Victoria's gambling authority has not paid enough attention to supervising Melbourne's biggest and only licensed casino, Crown Casino.
The Victorian Auditor-General's report into the operations of the Victorian Commission for Gambling and Liquor Regulation has found "significant shortcomings" in the way the commission handles its casino supervision operations.
The VCGLR is responsible for regulating and monitoring the Casino, which holds 13 liquor licences and is the only venue in Victoria that provides gambling and alcohol 24 hours a day.
The report, released on Wednesday, found it has not paid sufficient attention to responsible gambling, money laundering and detecting people excluded by Victoria Police.
Much of the oversight was down to VCFGLR's use of rotating compliance inspector teams rather than a dedicated permanent team, the auditor-general said.
Its rostering system made it difficult for workers to have continuous exposure to the casino or provide times to adequately train all staff.
Even the current manager of casino inspection activities was not assigned to the casino full time, the report said.
"Its current approach is not adequately risk based or purposeful and ... many important activities have been undertaken only sporadically," the auditor-general said in the report.
The VCGLR has begun to establish a dedicated casino team, something the auditor-general has applauded but urged to get completed soon.
The VCGLR has also sought to increase awareness of risks such as money laundering and criminal infiltration at the casino.
Liquor licencing was also an issue, with the VCGLR still not able to show that it properly examines and assess all licencing applications meticulously before approving them.
"VCGLR largely accepts the information provided to it by these applicants at face value," the report said.
"It relies heavily on both the honest of applicants and the diligence of Victoria Police and potential objectors to raise issues about the suitability of applicants."
The auditor-general found instances where the VCGLR granted licences where applicants had not provided complete information on their associates and past criminal convictions.
It has recommended the VCGLR require all applicants to provide evidence to show that all directors and associates have been disclosed and undertake ongoing checks of liquor licencees to ensure company changes have been disclosed.
The VCGLR accepted the recommendations.