The Star Entertainment Group did not “strictly follow” state gambling tax rules in 2020 by allowing high rollers to play as non-residents despite them residing in Australia, prompting concern that it underpaid taxes.

An inquiry heard on Monday that Star allegedly categorised foreign VIP players as “rebate players” – meaning they pay a lower gambling duty than residents of 10 per cent – even after law firm King & Wood Mallesons told the casino company that its process for determining players’ residencies was “inappropriate”.