Reef Hotel Casino investigation into possible unlawful junket operation
Nationwide scrutiny of high roller practices at casinos has extended to Cairns with the Office of Liquor and Gaming Regulation confirming the Reef Hotel Casino is under investigation.
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THE Reef Hotel Casino is under investigation for an alleged illegal junket operation.
An Office of Liquor and Gaming Regulation (OLGR) spokeswoman confirmed there was an ongoing investigation into the casino, which is owned by Accor Hotels and Casinos Austria but run by the ASX-listed Reef Casino Trust.
The Reef Hotel Casino was contacted for comment, but no response was received.
‘Junkets’ are people paid by the casino to entice high rollers with a focus on wealthy Asians, who are offered five star treatment with air travel and accommodation.
Under casino laws in Queensland, there is a requirement to obtain approval for certain agreements or arrangements, including junkets.
The OLGR advised casinos in September 2021 that junket approvals were considered expired and no junket operator arrangements should be entered without approval.
The OLGR said since that time, it had not approved any junket operator arrangements.
It scrutinises junkets in a bid to prevent criminal infiltration of the gaming industry.
It is understood that the investigation will consider allegations that there was an arrangement between The Reef Hotel Casino, along with The Ville in Townsville, and a Melbourne restaurateur which saw them paid with betting vouchers.
Casinos in Melbourne and Sydney have come under heavy scrutiny in recent times with Crown Casino in Melbourne found unfit to run a casino following a Royal Commission, while a report from an inquiry into The Star Sydney’s suitability to retain its NSW casino license is due on August 31.
The OLGR spokeswoman said the internal probe into Cairns and Townsville casinos was separate from the inquiry into the Queensland operations of The Star Entertainment Group – the Star Gold Coast and Treasury Brisbane – for which a report is due by September 30.
She said the state government was moving to strengthen the casino regulatory framework with penalties of up to $50m, self-reporting obligations and the ability for the Minister to direct a casino operator to engage an approved qualified expert to inquire into and report on any matter relevant to the conduct of casino operations.
The inquiry has heard evidence about certain gamblers being lured to Queensland after being excluded from venues in New South Wales and Victoria.
Attorney-General Shannon Fentiman said earlier this year the government was committed to transitioning to cashless gaming and moving toward more traceable electronic transactions.
She said there had been serious allegations made.
The inquiry is looking into Star’s commitment to anti-money laundering responsibilities and management of high rollers, including the management of associated bank accounts, transfers, credits and deposits, and whether those banned by police from attending Sydney casinos were encouraged to go to Star’s Queensland casinos.
A Reef Casino Trust half yearly report released last week posted $12.6m in revenue amounting to a 2.5 per cent increase on the half year result recorded in June 2021.
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