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Accreditation requires value judgements to be
made about applicants and a decision making body
is
required to assist in the administration of the
accreditation process. This body could be an
industry body
or a government body. Either way its role would
need to be recognised in legislation.
Accreditation offers
a feasible alternative to licensing. The main
drawback of a system of accreditation in the
gambling
market is that it would be dependent on the
market entrant being willing to follow the
accreditation
process. Governments have recognised the need
for gambling to occur only in an environment of
strict
control with the highest levels of integrity and
probity applying to the industry. Unless all
gaming
operators were accredited before operating in
the market, the integrity of the gaming industry
could still
be questionable. Unscrupulous operators are
unlikely to follow the accreditation path. If
all operators
needed accreditation, the system may still offer
some advantages over licensing but mandatory
accreditation becomes a de facto licensing
system. Accreditation does not offer the
protection afforded
by the current licensing system, particularly in
the area of probity considerations. It is
considered that
accreditation does not offer a full satisfactory
alternative to the current licensing regime.
Negative licensing
Negative licensing means that market entrants
are not screened at the entry stage. Persons are
prohibited from operating in the industry only
if problems are identified with their operations
such as
breaches of general consumer protection laws or
breaches of high level standards. Negative
licensing
requires legislative support because the
sanction is to prohibit a person carrying on an
otherwise lawful
function. An administering authority would still
be required mainly because judgements are being
made
about a person’s behaviour in the market place.
This approach is likely to be more costly to
government and less costly to the business
operators. The
gambling industry requires checks to ensure only
those operators with integrity and capability
are able to
enter the market. Probity checks before market
entry are the most effective way of ensuring the
integrity
of the gaming product. On balance, negative
licensing does not present a viable alternative
to the current
licensing system.
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