James Packer's Crown was victorious in the battle to win a second casino licence in NSW, but the rationale employed by the expert panel that advised Premier Barry O'Farrell does not sit so neatly with the wealth of opinion available from bodies like the National Competition Council and the Productivity Commission.

Competition provides consumers with cheaper access to goods and services and improves availability. But there are certain goods or services that while legal are considered to contain adverse social and economic consequences and more competition could become a net disbenefit for the community. Gambling can fall into this category.

James Packer's Crown won a second casino licence in NSW.

Former Australian Competition and Consumer Commission head Graeme Samuel noted that ''when it comes to gambling, competition is not always a desirable process because competition raises incentives to undertake activities, such as attracting more people to use your product, which may not be consistent with public interest considerations''.

The Productivity Commission's report on the subject provides parameters. ''The two objectives providing the strongest rationale for specialist gambling policies are to ensure probity and to reduce the adverse social impacts. The overarching goal should be to maximise the welfare of the community as a whole.''