‘Too big to fail’: Why embattled Star will live on in Queensland

Despite being deemed unsuitable to hold its casino licenses in Queensland, Star Entertainment’s hold on local politics mean it’s not going anywhere, gambling reform advocates say.

Star Entertainment Group has been deemed unsuitable to hold its casino licences in Queensland following a damning inquiry, putting the operational future of the $3.6bn Queens Wharf project under a cloud.

The gambling giant is now set to be issued a show cause notice in coming weeks and must explain why the state government should not at worst rip-up its licences on the Gold Coast and in Brisbane.

But gambling reform advocates said it is unlikely Star would be neutered in Queensland because the operator had too much influence on politics and was “too big to fail”.

The inquiry, headed by former Court of Appeal Justice Robert Gotterson KC, found Star had been “insufficiently transparent” with the Queensland regulator, “actively encouraged” banned persons to gamble in the state and was “seriously deficient” in preventing money laundering.

A dozen recommendations have been borne from the report, with the government supporting “in-principle” moves to modernise the state’s nearly 40-year-old casino control laws and bring in a raft of gambling harm minimisation measures.

This includes significant new controls on how much time and money punters can spend on the pokies, and bringing in “cashless” cards linked to a person’s identification if they want to gamble more than $1000.

Attorney-General Shannon Fentiman, handing down the report on Thursday, said Star had “embarked on a program of literally having a one-eyed focus on profit”.

“Mr Gotterson’s report highlights major failings and makes very serious findings which adversely affect The Star’s repute, their character, their integrity, and their honesty,” she said.

Ms Fentiman, based on the findings of Mr Gotterson, said she had formed the view that Star was unsuitable to hold its gambling licences.

An artist’s render of the Sky Deck running between the two Star hotels in the Queens Wharf development.

Star Entertainment operates two casinos in Queensland — The Star Gold Coast and Treasury Brisbane — and is a joint venture to operate the mega Queen’s Wharf project set to open next year.

Under the recommended changes to Queensland’s casino laws, a “special manager” would be put in place should an operator’s licence be stripped or suspended.

But Ms Fentiman said it was “not a foregone conclusion” what the penalties for Star would be, saying the company would be afforded natural justice through the show cause process — which is expected to last weeks.

Alliance for Gambling Reform chief advocate Reverend Tim Costello said he doubted Star would be stripped of its licence, noting “the formula” applied in other states where governments lashed operators for being terrible without punishing them.

“Government is so in bed with them that they’re too big to fail,” he said.

Greens MP Michael Berkman said Queen’s Wharf, which he dubbed a “dodgy mega-casino”, should never have been approved and called on the government to cancel Star’s licence.

A separate general investigation by the Office of Liquor and Gaming Regulation into Star’s casino operations in Queensland is being finalised.

Ms Fentiman signalled the report would not be released publicly if the regulator deemed potential breaches of law had occurred and a court process needed to occur first.

Queensland’s inquiry into Star’s operations in the state looked into its compliance with anti-money laundering responsibilities, the relationship with VIP patrons and high rollers, and junket operations.

The Queen's Wharf development site. Picture: NCA NewsWire / Dan Peled ,

The findings against The Star mirror those made against the gambling giant in New South Wales, and comes amid a wave of scrutiny targeting casino operators across the country.

Star Entertainment, in a statement, stated it was “currently considering the report and the matters raised by Mr Gotterson and will continue to work cooperatively with OLGR”.

The Gotterson report recommended a gambling card linked to a person’s ID be brought in, with no cash to be used for punts worth more than $1000 in a casino.

The data from carded play should be shared with researchers to enable studies into gambling harm.

Gamblers should also be made to pre-set a time and loss limit on the pokies, and should not be allowed to use the machines for more than 12 hours in a day or sit at one machine for more than three hours continuously.

Casinos should also be made to pay a “supervision levy”, just like New South Wales and the regulator should be given the power to “periodically” investigate operators, including on suitability.