GAMING WATCHDOG CHIEF QUITS OVER DRUG MONEY COMMENTS

The head of the New South Wales gaming watchdog bowed to pressure from
the Premier when she resigned yesterday after saying on national
television that she was sorry a convicted heroin supplier had been
banned from the Star City Casino.

NSW Casino Control Authority head Kaye Loder told ABC TV's Four
Corners on Monday night she was sorry police had banned Duong Van Ia,
who had been one of Sydney's biggest heroin traffickers.

Ms Loder stepped down from the role hours after Premier Bob Carr
warned she would be sacked if she did not resign.

Van Ia, known to the casino as Van Duong, was sentenced to eight
years' jail in 1998 for supplying heroin. According to casino records,
Van Duong gambled $94 million in six months at the casino in 1996,
including $24million in one month.

Ms Loder had told Four Corners the money had been going back into
state revenue via the casino.

"I'm sorry to see the money go out of NSW, but I'm speaking personally
for myself," Ms Loder said.

"If you have a legal casino, at least you regulate the gambling that
is available and the state obtains some benefit from the revenue.

"If that money is coming from heroin deals and is going into casino
gaming and is coming back to the state in the way of revenue, it's a
matter of debate about whether or not that's a good thing, or an
acceptable thing," Ms Loder said.

Mr Carr said he had been surprised and appalled by the
comments.

"I sought her resignation... because I found her comments on Four
Corners were unacceptable," Mr Carr told reporters in Sydney.

"We don't want to see people who've made money out of this inhuman
trade in addictive drugs be able to put their money, ill-gotten as it
is, immoral as it is, through the casino.

"It's clearly intolerable to me to have the person who chairs the
casino control authority saying that it's somehow acceptable, that
it's somehow the lesser of the available evils, to have money accrued
through heroin dealing put through roulette," Mr Carr said.

Under state laws, police and the authority can ban patrons from the
casino.

According to NSW Gaming and Racing Department figures for September,
1995, to February this year, 2089 people had been permanently banned
from the casino, with 28 of the bans issued under police orders.

The reasons for the bans ranged from offences such as leaving children
in cars to evidence of drug money laundering.

Mr Carr said the comments did not suggest that the laws required
tightening.

"No one's suggested that the powers in the legislation are
inadequate," he said.

State Opposition leader Kerry Chikarovski said a report into casino
operations was needed to reassure the public that the venue was not a
laundromat for drug money.

She also said the government needed to ensure that the authority
chief's vacated role would be filled by someone chosen on merit and
not from within party ranks.

"Kaye has been a long-standing member of the Labor Party; she has been
involved with the Labor Party for many years," she said.

"What we need to see from the Premier is people being appointed on
merit, not because they happen to be a Labor mate."

A spokesman for NSW Gaming and Racing Minister Richard Face said that
while no decision had yet been made, it was most likely the position
would be advertised.