Star casino review head questions licence suitability claims after resignations
The head of the review into Star has challenged the gaming group’s claim that it is currently suitable to hold a NSW casino licence.
Star Entertainment is now suitable to hold a NSW casino licence due to the changes it has made throughout a public review into its operations, its lawyers have submitted.
Barrister Kate Richardson, SC, on Tuesday told the Bell review into Star Entertainment’s licence the company accepted evidence given to the review that it might not have been suitable to hold a licence at the start of the hearing.
“The Star accepts that evidence means it is open for the review to conclude that as at the commencement of the review The Star was not a suitable person to hold a casino licence,” Ms Richardson said.
But she said, Star now submitted changes undertaken in recent months including the departures of many senior executives including former chief executive Matt Bekier and former head of its Sydney operations Greg Hawkins, show that it was currently suitable to hold a licence.
“The Star respectfully submits that the review should conclude it is presently suitable to hold the casino licence,” she said.
Ms Richardson was giving the Star’s closing arguments to the review.
Counsel assisting the inquiry, Ms Naomi Sharp SC, has submitted to the inquiry that the Star is not suitable to hold a casino licence in NSW.
Ms Richardson said the current Star board had demonstrated that it had “an understanding of the serious misconduct that has been identified” during the hearings.
“Each member of the board has given evidence before the inquiry and shows a thorough understanding and acceptance of the serious deficiencies evident in the review,” she said.
She said the evidence given to the review “would support a finding that the culture within the ranks of senior management fell way short of what is to be expected”.
She said the current non executive directors of Star were unaware at the time of the shortcomings within the company.
“The board has responded entirely appropriately,” she said.
“It took prompt action (to ensure) that those involved in the conduct are no longer involved in the business.
“The key persons are no longer involved.”
She said the actions of the board had shown that action had been taken “to ensure a proper culture at all levels of the business and that the risk to its reputation is minimised”.
She said the departure of several key executives of Star including Mr Bekier and Sydney casino manager Mr Greg Hawkins had “sent a powerful message to all employees of the company” that the board would not tolerate the lapses in governance which had occurred at the company.
She said Star had taken action including no longer dealing with junket operators and not using China Union pay credit cards to allow its patrons to gamble.
“The persons who engaged in misconduct are no longer in the business,” she said.
She said the Star also accepted the need for an inquiry into whether it had paid the appropriate amount of duty to the NSW Government.
“There has been a dramatic change in the board’s understanding of risks,” she said.
The head of the review into Star, Mr Adam Bell SC, has challenged Star’s claim that it is currently suitable to hold a NSW casino licence.
In hearings in Sydney on Tuesday, Mr Bell told Star’s counsel Ms Kate Richardson SC that the former head of the Sydney operations of the Star, Mr Greg Hawkins had given sworn evidence to the inquiry before former NSW supreme court judge Patricia Bergin around the operation of Macau junket operator Suncity at Star’s Pyrmont casino which was later found to be incorrect.
Mr Bell said there were no steps taken by Star to correct the evidence to Commissioner Bergin at any time before the delivery of her report in early 2021.
He said when he had asked a question in October last year whether there were any more matters to be disclosed affecting its suitability to hold a casino license there was “not a word provided in response concerning the extraordinary activities” which took place in Salon 95 in Star’s Pyrmont casino.
“It was left to this review to uncover this wrongdoing despite that non disclosure by the Star in November 2021,” he said.
“What do these two matters say about the current suitability of Star (to hold casino license in NSW)?”, he asked.
The hearing before Mr Bell is continuing.
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