Star retains connections with crime-linked junket operator

Star’s chief casino operator Greg Hawkins says no decision made by the group to cease its relationship with Alvin Chau.

The reports also revealed Star had an exclusive fixed high-roller room or gaming salon for Suncity inside its flagship Sydney casino. Picture: Toby Zerna

Star Entertainment, Australia’s second-largest casino operator, continues to have a relationship with a junket operator with alleged links to organised crime, one of its top executives has told a public inquiry.

A day after the James Packer-backed Crown Resorts group admitted it was still working with Alvin Chau and his Macau-based and Hong Kong Stock Exchange listed Suncity Group, Star’s chief casino operator Greg Hawkins - a former Crown executive - said no decision had been made by the group to cease its relationship with Mr Chau.

A series of media reports in July last year alleged Crown’s lax risk management practices allowed it to partner with junket operators with links to drug traffickers, money launderers, human traffickers and organised crime groups.

The reports also revealed Star had an exclusive fixed high-roller room or gaming salon for Suncity inside its flagship Sydney casino and claimed Mr Chau has been blocked by the Department of Home Affairs from entering Australia because of his alleged organised crime links.

Mr Hawkins confirmed Star had “introduced an ongoing review from an AML/CTF (anti money laundering/counter terrorism financing) perspective of the junkets that were referred to” following the media reports.

Specific action

“We took specific action on the individuals that were named and some of the associations we had there. That included the finishing up of the relationship with Sun City. It ceased the fixed room arrangement not long after the media story,’’ he said.

But asked on Tuesday at a public inquiry into Crown and the regulation of junket operators if Star was still dealing with Mr Chau and another junket promoter, Mr Hawkins replied: “That is correct.”

“I understand there will be an ongoing review of Mr Chau and that will be reviewed continually but at this stage we continue to deal with him,’’ he said.

“I haven’t been updated from that team to change any relations in terms of operations with that junket at this stage.”

The inquiry heard on Monday that in June 2017, the anti-money laundering agency Austrac contacted Crown asking it to explain how it considered its partnership with Mr Chau to be appropriate.

Crown revealed it had additional “controls” put in place for Suncity two years ago when management discovered $5.6m in cash stored in a cupboard at its exchange desk.

In a filing to the Hong Kong Stock Exchange last August in the wake of the media reports, Suncity said Mr Chau had no intention of visiting Australia in the next 12 months but claimed it was not aware of “reported investigations into Australian casinos.”

Mr Hawkins revealed Star received correspondence from the NSW Independent Liquor and Gaming Authority following the July media reports, noting they were inquiring “quite thoroughly and deeply” about the casino group’s junket relationships.

Audit of matters

“I am broadly aware they have also conducted an audit of matters pertaining to the international rebate area over the past six months,’’ he said, before noting he was unaware of the outcomes.

The NSW Independent Liquor and Gaming Authority is considering whether Crown should retain the licence for its $2.4bn casino in Sydney. It is also reviewing the broader regulation of junket operators, which has brought Star into the hearings.

Human rights lawyer Chris Sidoti, who was chair of the NSW Casino, Liquor and Gaming Authority for six years, also told the inquiry on Tuesday that a “strong independent active regulator with independent functions” was essential for the industry.

“They are given a licence to print money. Why shouldn’t they be funding the best source of regulation,’’ he told the inquiry.