The Star has denied being “wilfully blind” to the possibility that alleged corporate criminal Michael Gu was using investor funds from his now-collapsed property group iProsperity to gamble at the casino, despite $1.35 million of his payments coming after its failure.

The NSW inquiry into Star’s suitability to hold a casino licence heard on Tuesday claims that Star offered iProsperity’s founder Mr Gu – who fled Australia following its $350 million collapse in 2020 – $500,000 in credit in 2018 without completing rigorous due diligence.