Star inquiry: High roller showered with gifts including Rolex watch, court hears

An inquiry into Star’s Queensland casinos has heard a high-rolling gambler was lured to play on the Gold Coast despite the man’s ban from the entertainment giant’s Sydney site over alleged criminal links.

STAR Casino showered expensive gifts, business class flights, luxury accommodation and free bets to lure a high-rolling blackjack gambler to play at its Gold Coast casino despite the man’s ban from its Sydney site over alleged criminal links.

An inquiry into the entertainment giant’s Queensland casinos heard the gambler continued to be plied with luxury perks – including a $52,000 Rolex watch on a “milestone” birthday – for more than a decade after the NSW Police Commissioner issued a permanent ban on the patron from attending the Sydney Star casino in 2007.

On Wednesday the court heard the man – whose identity has been suppressed during the inquiry – once presented close to $150,000 of cash with a “waxy finish” in a plastic bag at the Gold Coast casino, and during one trip was arranged free gambling vouchers after losing $450,000 gambling in just twenty minutes.

Details of backdoor “workarounds” Star employees enacted to accommodate to keep the man gambling were also laid bare.

The Star Gold Coast Casino.

This included activating and deactivating his loyalty card, and at one stage offering him $31,000 of “comp” to cover expenses after the gambler lost more than $885,000 in just a few months.

Star President Domestic and International Casino Marketing Chris Peasley told the court he and other staff knew the man was banned by the NSW Police Commissioner from the Sydney Star.

Regardless, he said Star’s anti-money laundering team advised that the man should be treated as “any other player” of value.

“We were told that the customer can come to the (Gold Coast) property, can receive the benefits of the program, we can book him into rooms, if he requests to attend an event he can attend an event,” he said.

But he said the team was told not to do anything to “pursue” the gambler.

Asked by counsel assisting the inquiry Jonathan Horton QC whether gifting a $52,000 Rolex to the patron for his birthday was “pursuing him”, Mr Peasley said it was in recognition of the punter’s long association with the casino.

But Mr Peasley also admitted the anti-money laundering team would not have been told about the watch.

He was also asked whether the fact the NSW Police Commissioner had banned the ban caused him any worry that the patron’s access to money “could involve criminal activity in some way, and risk the casino’s involvement in that activity?”

“I wouldn’t say it caused worry. I think it caused concern, and again that’s why I reached out to the specialists in that area. I don’t think I was worried, but it certainly raises a concern, some might say a red flag,” Mr Peasley said.

Star Entertainment Group General Manager (Anti-Money Launder/Counter Terrorism Financing Compliance) Howard Steiner also gave evidence.

Mr Steiner, who has only been at Star since 2020, said under Star’s new policy, an exclusion in one jurisdiction would automatically lead to a ban from all of the company’s casinos.

Asked by Mr Horton about a number of instances involving the man which could have raised alarm bells over money laundering – including a time where he presented $149,000 of cash in a plastic bag – Mr Steiner said, “to me, that (activity) would result in an immediate exclusion”.

Star Entertainment Group General Manager (anti-money launder/counter terrorism financing Compliance) Howard Steiner. Picture: Liam Kidston

The court also heard of a time when the man presented cash that was “wet and stuck together”.

Mr Steiner was asked whether, based on these facts, there was any reason for the casino to have “maintained a relationship” with the gambler, he replied “no”.

The gambler was also given business class flights to come to Queensland, accommodation upgrades for himself and friends, frequent expensive dinners, tickets to John Farnham and The Village People concerts and gift cards.

When a $52,000 Rolex planned for a gift for the gambler for a “significant birthday” was not ready on the day, senior sales staff arranged for a custom made replica cake to be made of the watch.

Mr Horton put to Mr Peasley that his and his team’s focus was more on the profit and commercial outcomes, rather than an attempt to address potential anti-money laundering or enact any responsible gaming policies.

Mr Peasley said on reflection, in terms of sticking to the company’s own exclusion policy, “there had been failings from the get go”.

“Looking at the exclusion policy, I would say we were not in line with the policy,” he said.

“We thought we were recognising loyalty.

“The mere fact Person 1 was able to be part of the loyalty program was (in itself) an inducement or an incentive.”

The Star Casino’s VIP premium gaming room on the Gold Coast. Picture: thestar.com.au

The inquiry’s public hearing, overseen by retired Supreme Court judge Robert Gotterson, is due to continue today – with Mr Steiner to continue to give evidence, and the company’s interim chief executive Geoff Hogg slated as the final witness.

Attorney-General Shannon Fentiman announced the inquiry probe into the Queensland casino operations of the entertainment group – the company behind the $3.6b Queen’s Wharf development due to open in the Brisbane CBD next year – in June, with the review due to deliver its report by September 30.

Ms Fentiman confirmed on Wednesday the Office of Liquor and Gaming Regulation was investigating allegations aired this week that Hong Kong-based Chow Tai Fook enterprise – a 25 per cent partner Queen’s Wharf – has links to criminal activity,

“The current review into Star’s operations and ongoing suitability to hold a casino licence is broad, and will examine its close associates – this includes Chow Tai Fook Enterprise,” she said.