Police had serious concerns that a casino in Canberra would attract interstate criminals, professional gamblers and ''cheats'', and lead to money laundering and armed robbery.
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''It is expected that there will be an increase in prostitution to cater for a certain element of anticipated clientele,'' the Australian Federal Police said in 1987. ''The AFP expresses strong concern at the lack of previous consultation in the preparation of the submission as the recommendations, if adopted in this present form, would facilitate the operation of both organised and general crime in the ACT.''
The concerns are revealed in cabinet papers released by the National Archives.
The Attorney-General's Department was also worried about criminal activity and called for thorough checks on ''all those involved in the casino development'', similar to the vetting procedure used for the Christmas Island casino.
The Department of Prime Minister and Cabinet questioned the conclusion in the cabinet submission that the ''general political and economic climate in the ACT is now more favourable'' to casino legislation.
The department suggested delaying a decision on the casino since ''strong community feelings can be anticipated''.
The National Capital Development Commission supported the proposal, while the Finance Department said the project was ''really one for political judgment at this time''.
The decade-long saga about building a casino in Canberra was settled in December 1987, when federal cabinet agreed in principle to the project.
However, the project did not follow the proposal for a takeover of prime land in Canberra's heart, where a casino was promised to rise with an international hotel, restaurants and a new theatre.
A temporary operation began in the National Convention Centre in late 1992 and the casino opened for business in its present location at Binara Street, adjacent to Glebe Park, in 1994.
Unlike other casinos in Australia, it is not licensed to operate poker machines.
Asked about any rise in criminal activity, an ACT Policing spokesman said the crime data had been assessed and ''it appears there have been no increases in criminal activity specifically attributable to the casino''.
The cabinet papers show the AFP believed a casino in Canberra presented potential for increasing criminal activity in the territory.
''There will be an influx of professional gamblers, cheats, interstate
criminals and their associates, and the premises are likely to be used as a money-laundering facility,'' police said in comments attached to the submission of then environment, tourism and territories minister John Brown.
''In addition to sophisticated internal security, which will no doubt be installed, adequate police contingency plans will be required to counter and react to large-scale armed hold-up activity,'' police said.
''It is important that the legislation outlaws effectively all illegal gambling.
''The AFP should be involved, from the earliest stages, in the drafting of legislation and the establishment of criteria for staff and organisation selection.
''The AFP also expects to be consulted on the developer(s)' and licensees' suitability before minister's approval is given, as well as on the suitability of all persons employed, including persons under contract who are not directly involved in the operation of the casino.''
The previous Fraser government wanted to develop a conference centre in Canberra, but not a casino.
The cabinet papers show the casino was to be developed as part of a complex involving other tourist and commercial facilities and incorporating a theatre and library financed by the overall development.
Mr Brown's submission called for the project to be on the site of the theatre and Civic Square, and the future home of the Legislative Assembly.
''With the need for improved tourist and community facilities in the ACT and the wind down in building construction activity from 1988 with the completion of Parliament House, there is a need to look to a range of new and innovative initiatives which will enhance the tourism potential of the city,'' the submission said.
''As part of this activity, I propose to put together a major private sector development of Section 19 City (including the existing theatre complex and Civic Square) incorporating international standard hotel/accommodation complexes, a casino, restaurants, various other appropriate commercial facilities, car parking and a new theatre and territorial library.
''It has the potential to generate up to $3 million in casino tax revenue in its first year of operation, and possibly higher levels in subsequent years.''
Mr Brown noted a casino ordinance was disallowed in the Senate in December 1983 on the motion of then ACT Liberal senator Margaret Reid.
''I consider that the general political and economic climate in the ACT is now more favourable to the introduction of casino legislation, although there is opposition,'' Mr Brown said.
''The concerns of the Licensed Clubs Association of the ACT should be allayed by a prohibition on poker machines in the casino.''
