The Star money laundering inquiry: City of Sydney Council ‘ends relationship’, funding arrangements with casino
City of Sydney Council has cut ties with the embattled Star Casino just days out from the second public inquiry which will determine if it will be allowed to hold a casino licence.
Central Sydney
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City of Sydney Council has moved to “end its relationship” with the embattled Star Casino – amid concerns around allegations of rampant money laundering – just days before hearings for a second public inquiry is set to begin.
City of Sydney Council moved this week to block any new grants being issued or relationships with the Pyrmont-based casino, citing concerns around a series of high profile resignations and the suspension of its casino license from the NSW Government.
“After failing to adequately address the problems identified by the 2022 inquiry, The Star Casino is now subject to a second inquiry by the NSW Independent Casino Commission into its operations,” a motion approved by council reads. “In the last month, The Star Casino’s chief executive officer, chief financial officer, head of customer service, and chief of staff have resigned.”
Councillor Sylvie Ellsmore moved the motion to block any further relationship with the embattled casino operator after City of Sydney granted $40,000 in funding to the New Sydney Waterfront Co, a government funded business improvement district group with a representative of The Star Casino on its board, looking to revitalise the wider Darling Harbour and Pyrmont precinct.
A further $50,000 was issued by council for an innovation and ideas grant in 2023 to fund a “Research and Feasibility project to develop an Environmental, Social and Governance vision for the Western Sydney Harbourfront Precinct”.
Meanwhile, a total of $450,000 in seed funding was also issued by the NSW Government to launch the initiative in 2021.
The Greens councillor wanted the council to go one step further, and cut ties with the New Sydney Waterfront Co – due to the association with The Star Casino.
However the move was blocked by a majority of councillors.
“Given the findings of the NSW Independent Casino Commission’s Inquiry and the failure to implement changes in a timely manner, The Star Casino is not an appropriate organisation to receive or benefit from Council funding,” the council motion reads.
The council’s chief executive has been asked to write to the chair of the New Sydney Waterfront Co to express concerns about The Star casino’s membership on its board, “while a second independent inquiry is underway into the operations of the casino”.
But Cr Ellsmore said this didn’t go far enough.
“It is a farce to just treat The Star Casino like any other businesses, given their history and agenda,” she told The Saturday Telegraph.
“Why the hell is Council continuing to provide public money to a “business organisation” led by a casino which is under investigation?
“That last inquiry led to a $100 million fine and the suspension of their casino licence.”
Newly appointed Star Sydney chief executive Janelle Campbell told council the organisation’s involvement in Sydney’s Western Harbour Precinct proposal has “included a funding investment of over $500,000 in the last two years alone”.
“We believe strong collaboration and positive engagement has helped guide the development
of the New Sydney Waterfront Business Improvement District (BID) to this point,” she said. “The Star is eager to continue our positive engagement in the BID proposal project,
demonstrate our commitment to the Pyrmont community and continue to work hard to return
to suitability.
“We are one of twelve board members including Crown, ICC Sydney, Mirvac, Accor and the Sydney Fish Market.”
In February, the NSW Independent Casino Commission announced a second inquiry into The Star, investigating its suitability to hold a casino licence.
“There is much at stake for The Star, so the NICC is giving the casino every chance it can to demonstrate whether it has the capacity and competence to achieve suitability,” NICC chief commissioner Philip Crawford said.
“This includes meeting its financial obligations under the casino licence and funding its remediation program sufficiently.”
The independent inquiry will host public hearings from April 15.