Star inquiry hears stories of gambling addictions

Emotional witnesses have shared harrowing stories of gambling addictions on the first day of an inquiry into Star Entertainment Group’s Queensland operations, with the casino giant’s practices put under the microscope.

Emotional witnesses have shared harrowing stories of gambling addictions on the first day of an inquiry into Star Entertainment Group’s Queensland operations, with the casino giant’s practices put under the microscope.

The inquiry also heard high-rolling gamblers who were throwing up money-laundering “red flags” were lured to play in Queensland casinos with incentives, and that $55m in gambling transactions from Chinese patrons was secretly disguised as hotel expenses.

Overseen by retired Supreme Court judge Robert Gotterson, the operator behind the $3b.6 Queen’s Wharf development is facing questions on its practices just days after media reports surfaced of allegations Hong Kong conglomerate Chow Tai Fook – which has a 25 per cent stake in Queen’s Wharf – has links to Chinese organised crime.

Star Entertainment is the operator behind the Queen’s Wharf development in Brisbane’s CBD.

During his opening remarks counsel assisting the inquiry Jonathan Horton QC said the inquiry would hear matters on Star’s anti-money laundering practices, including evidence people who had been excluded from NSW casinos were lured over the border to gamble in Queensland.

“There’s the issue of some people being actively encouraged to come to Queensland and being given benefits to do so, even though ¬– and this might be an understatement – red flags existed, which ought to have led to their exclusion, let alone not inducing the person to be here,” he said.

“Some of them on no view should have been invited to come to Queensland given the unavoidable suspicions … they were involved in criminal activity, the source of their money, and the fact of the exclusionary treatment in other jurisdictions.”

Mr Horton also stated there was evidence of a system where patrons’ China UnionPay cards were credited with non-gambling items, which were then exchanged for cash and gambling chips, more than 1100 times.

When the gambling giant’s bank NAB questioned the Star about how the funds were used, they gave various explanations, with the bank later requesting documentation to prove clients were using funds on entertainment or accommodation.

Mr Horton said the company did not advise NAB the funds may be being used for gambling, when in fact $55m had been spent using the practice, noting it was about 10 per cent of what had occurred at Star’s Sydney casino.

Much of the first day of the inquiry was dedicated to the wide-reaching harm of gambling addiction, with three witnesses – whose identities were kept secret – giving evidence, with one saying she thought “the only way out was to die”.

Jonathan Horton QC attends the Star Casino inquiry. Picture: Jerad Williams

She told the inquiry how she was first introduced to poker machines 30 years ago, playing at the local pub with a group of friends and saying it seemed “fun and innocent”.

But she said following a number of personal tragedies and marriage issues, she found herself finding comfort in playing alone.

“I was able to see, when I looked back, that it was the beginning of the end”,” she said. “(Ultimately) I lost more money than I can count, I lost every shred of self-esteem.”

She said she may have gambled at Star during visits to Queensland, but she couldn’t be certain. The other two witnesses also did not have direct criticism Star’s Queensland casinos, though one said he did occasionally gamble at its Treasury Casino during the grips of his addiction.

Star Entertainment Group Manager Responsible Gambling Junior Toleafoa was the first company employee appear before the inquiry, and was grilled on the management of potential gamblers.

He said Guest Support Managers – frontline staff to provide support to patrons on problem gambling and approach at-risk patrons – were not available 24/7 at its casinos.

Mr Toleafoa also said it was “not ideal” patrons who want to self-exclude themselves from casinos due to their gambling addictions could not do so online, and had to attend a casino or a nominated Gambling Help Service centre to do so.

Star Entertainment Group Manager Responsible Gambling Junior Toleafoa. Picture: Jerad Williams

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.

Mr Toleafoa was expected to continue to give evidence on Wednesday, followed by Star’s President Domestic and International Casino Marketing Chris Peasley.

The company’s General Manger (Anti-Money Laundering) Howard Steiner will give evidence Thursday, and interim chief executive Geoff Hogg slated as the final witness.

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.