Star Casino inquiry: Questions to be asked over major stakeholder’s alleged links to triads organised crime

The independent inquiry into Star casinos in Queensland has heard from a gambling addict who described how pokies “took over her brain”.

An anonymous witness has told the inquiry into Star Casino’s Queensland operations about her struggles with gambling addiction.

Led by retired Supreme Court judge Robert Gotterson, the operator behind the $3b Queen’s Wharf development will face questions over the ongoing suitability to hold a casino licence in the state, regulation and the operations of Star’s Queensland casinos.

The inquiry is also set to delve into the group’s commitment to anti-money laundering practices, management of VIP patrons and high-rollers, and whether the casinos actively lured patrons who had been banned from the Sydney Star Casino.

Witness C told the inquiry how she was introduced to poker machines 30 years ago.

She said she went with a group of women, and it seemed fun and innocent.

But she said a number of tragedies and marriage issues she found herself in a pub, and was the first time she ever went to the pokies by herself.

“I was able to see when I looked back that was the beginning of the end”,” she said.

“(Ultimately) I lost more money than I can count, I lost every shred of self-esteem.

“The machines are designed to do that – they kind of take over your brain.”

he witness said it got so bad, “I thought the only way out was to die”.

A witness has told an inquiry into Star Casino’s Queensland operations that pokies “took over her brain”.

She said she may have gambled at Star during visits to Queensland, but she couldn’t be certain.

“I gambled wherever I went,” she said.

She said there were times where she was gambling thousands at a time, juggling credit cards and struggling to pay bills.

Another anonymous witness gave evidence on finding out her husband had a secret problem with gambling.

Witness B said she was living in fear and shame, having to borrow money from her sisters to survive.

“Every payday he was at the casino,” she said, saying her husband mostly played blackjack.

“He couldn’t see what was happening, because he was so obsessed with gambling.”

She said her husband raided their savings accounts and term deposits, even lying to their bank’s manager that they needed money for her mother’s funeral.

The first Star Entertainment Group employee is now set to face questions at the inquiry. Group Manager Responsible Gambling Junior Toleafoa was on Tuesday afternoon being asked about the appropriateness of certain language, such as “problem gambling”, “gambling harm” and “responsible gambling”.

Previous witnesses have been critical of these terms as blaming individuals for their addictions or actions.

Asked whether he believed the term “safer gambling” is appropriate, he says he does.

Chinese punters’ ‘secret’ $55m gambling spree

An inquiry into Star Casino’s Queensland operations has heard Chinese patrons gambled more than $55m in transactions secretly disguised as hotel expenses.

The inquiry’s counsel assisting Jonathan Horton said there was evidence of a system where patrons’ China UnionPay credit cards were credited with non-gambling items, which were then exchanged for cash and gambling chips.

When the gambling giant’s bank NAB questioned the Star about how the funds were used, they gave various explanations.

The bank wrote to the former group treasurer of the Star to request documentation that clients were using funds on entertainment or accommodation.

NAB then requested specific information about certain China UnionPay transactions at the Star Sydney.

But Mr Horton said the company did not advise NAB the funds may be being used for gambling.

NAB later withdrew its acceptance of China UnionPay.

Under the system, gamblers spent $55m over 1168 instances – about 10 per cent of the level in Sydney.

RED-FLAG HIGH ROLLERS ENCOURAGED

The independent inquiry into Star Entertainment Group and its operations in Queensland has heard the group actively encouraged and incentivised high rollers to visit the state despite obvious money-laundering “red flags” which should have led to them being banned, not encouraged.

An artist’s impression of the Queens Wharf development. Picture: Richard Walker

Howard Steiner from Star – General Manager (money laundering) – has been interviewed for the inquiry on Star’s commitment to its money laundering responsibilities

Jonathan Horton QC said matters on money laundering were handled at a group level.

He said there were examples of people being actively encouraged to Queensland and given incentives to do so, despite obvious money-laundering “red flags” which should have led to them being banned, not encouraged.

Mr Horton said it had to be asked whether lessons were being learned and whether the actions of the past would be taken again.

He said there would be evidence high-rollers were incentivised with gifts with “profit” in mind.

Junket arrangements, Mr Horton said, made it harder to know all participants, and where their money was coming from.

He said there had been little change to Queensland's junket regulations since 1993.

In 2018 Star began an upgrade and expansion of casino operations on the Gold Coast, and since then more junket players were at the casino.

In May 2020 Star announced the suspension of all individual domestic and international rebate play programs and reconfirmed a commitment to not be dealing with junkets while inquiries were underway.

They also confirmed individual junket players with travel arrangements in place had been contacted and told they could no longer attend.

The Star hotel and casino at Broadbeach on the Gold Coast. Picture Mike Batterham

The inquiry will hear Star has a new strategy on problem gambling and there would be questions on whether staff were given incentives.

Interstate exclusions, with a focus particularly on those excluded from the Star Sydney casino, and whether those patrons were encouraged to gamble in Queensland, will also be a key focus.

We wish to explore three particular shortcomings on this issue, including that a person excluded from Star by the NSW police commissioner were thought to have been, but were not, excluded from Star casinos Queensland.

Mr Horton also said in 2019, when the Star ultimately adopted a policy whereby a person excluded by Star Sydney would be excluded from Star’s Queensland casinos, were not retrospective.

“I would encourage those who have information relevant to the terms of reference to provide that information by making contact with the solicitor’s assisting the review,” Mr Gotterson said during an initial public hearing in July.

“If that material is such as requires it to be explored with witnesses, it should be provided as soon as possible.”

GAMBLING VICTIMS GIVE STATEMENTS

A former gambling addict who will only be known as Witness A has told the inquiry how he first attended a gambling establishment when he was 14, and had stopped gambling since 2005.

But he said it was difficult to say he had fully recovered from compulsive gambling.

“My recovery is dependent on not having that first bet,” he said.

The Witness said he attended the Treasury Casino in Brisbane, but not frequently, saying they were places he would go on a weekend “if I had money left over after a big day gambling”.

“There were only two reasons I left a venue – the venue closed and they kicked me out or the money was gone,” he said.

Witness A told how he visited the Treasury Casino in Brisbane. Picture: NCA NewsWire / Dan Peled

Witness A said he would gamble every day, and on his first day of full-time work when aged 17 lost all his wages during his lunch break.

He said the impact on his parents was immense, including significant mental anguish and even physical illness because of the related stress.

The witness said he was still paying off his gambling debts 10 years after he had his last bet.

He told the court the feeling of walking into a gambling venue with money to spend was exhilarating.

But he said he does not believe gambling should be banned.

“As a society when we choose to allow the opportunity for people to choose to gamble, then we have to understand that providing those opportunities create the opportunity for harmful addiction,” he said.

The witness told the court there needs to be more accountability from the company’s who are facilitating problem gambling.

He said there should be questions about what data or information gambling giants were using to monitor whether harmful gambling was occurring.

“There is a need to be mindful about how we showcase or advertise gambling,” he said.

Asked about Star’s responsible gambling policies, he said a policy without some way of ensuring that those policies are being followed through are just words on a page.

“I think their policies – a lot of them make sense,” he said. “What I’m less sure is are they accountable and is there a transparency about those commitments within those policies.”

Star’s lawyer Gareth Beacham asked the witness whether would have been comfortable with his self-exclusion information being shared with other places, such as between the TAB and a casino operator, to which the reply was yes.

12,000 DOCUMENTS RECEIVED BEFORE HEARING

Mr Horton said that since the initial public hearing, more than 12,000 documents have been received, with multiple witnesses interviews.

“We have studied the reports form recent interstate inquiries, including the Bell injury,” he said.

He says their key material is in four parts: gambling and harm minimisation, cross-border movement for people banned, use of China Union Pay cards in Queensland, and the Star’s commitment to its money laundering facilities.

Mr Horton said issues of public health, integrity of casino operations and general concern about how the regulation of casinos may be enhanced were other topics raised in the submissions.

He said on the question of the casino paying for its own oversight, “it seems desirable that user pays and taxpayers not foot the bill for keeping the casino in check”.

Interim CEO Geoff Hogg has been compelled to appear. Photo: Scott Powick Newscorp

The inquiry delved into controversy over use of China UnionPay cards, with Mr Horton saying it had been found China UnionPay cards were used to charge for hotel and general expenses, which were then exchanged for cash or chips.

When NAB questioned the Star about how the funds were used, they gave various explanations.

The bank wrote to the former group treasure of the Star to request documentation that clients were using funds on entertainment or accommodation.

NAB then requested specific info about certain China UnionPay transactions at the Star Sydney.

But Mr Horton said Star did not advise NAB the funds may be being used for gambling.

NAB later withdrew its acceptance of China UnionPay

“The evidence suggests some $55m was transacted using the process as described,” Mr Horton said.

He said it should be noted it was less than in NSW: “About 10 per cent of what took place there.”

He said a number of people from Star have been compelled to appear including Interim CEO Geoff Hogg and Group Manager (Responsible Gambling) Junior Toleafoa.

Attorney-General Shannon Fentiman announced the independent probe in June, saying the inquiry would have “all the powers, authorities, rights, privileges, protection and jurisdiction of a commission of inquiry”.

“There have been serious allegations made, along with a number of public inquiries and regulator investigations over recent years,” Ms Fentiman said.

“Given the weight of evidence that has emerged regarding the operations of The Star Sydney and the shared governance and operational arrangements of Star Group more broadly, it is important the inquiry can seek information from anyone it sees fit.”

The review is due to deliver its report by September 30.

Media reports this week have made allegations Hong Kong conglomerate Chow Tai Fook – which has a 25 per cent stake in Queens Wharf – has Chinese triad links.

In a statement to the Australian Stock Exchange, Star Entertainment Group said it “does not consider it appropriate to comment at this time” due to the ongoing inquiries in Queensland and NSW.