Queensland casino probe will help ensure probity

Queensland’s decision to launch an independent inquiry into Star Entertainment’s ­fitness to continue holding casino licences in Brisbane and the Gold Coast is correct and necessary. It follows revelations of money laundering, fraud and illegal ­junkets at the gaming giant’s ­Sydney operations. These were brought to light at the NSW inquiry into Star’s Sydney casino, which prompted an exodus of the company’s executives and a recommendation it be stripped of its licence. Similar probes were also held into Crown casinos in Victoria, NSW and Western Australia.

Queensland Premier Annastacia Palaszczuk agreed to an inquiry after The Australian on Monday ­revealed close ties between Star and senior Labor figures including Evan Moorhead, a former state ALP secretary who worked in Ms Palaszczuk’s office until 2019 and ran her 2020 re-election campaign. Mr Moorhead has been consulting for Star, including advising the company on dealing with the government. His spokesman, Ms Palaszczuk and Queensland Attorney-General Shannon Fentiman all say Mr Moorhead has not had contact with the government on behalf of Star. A public inquiry will clear the air. It will provide transparency in relation to the government’s dealings with Star.

It also will examine issues that have proved problematic in NSW. On Monday, The Australian revealed that the viability of Star’s Queen’s Wharf Brisbane casino, due to open next year, is dependent on junkets that bring rich Chinese gamblers and are now at the centre of money laundering and tax evasion allegations interstate. A former senior Star employee with knowledge of its “business case” for Queen’s Wharf told The Australian the success of the Brisbane riverfront casino was predicated on taking 10 per cent of the junket market coming to Australia. The junket market involves casinos flying high-rollers into Australia by private jet and providing as much as $100,000 in “lucky money” for gambling. The independent NSW inquiry, headed by Adam Bell SC, has heard Star concealed millions of dollars in transactions by marking the money as hotel expenses. Senior Star executives conceded the company had misled National Australia Bank about the nature of cash withdrawals, which flouted anti-money laundering procedures.

Building of the Queen’s Wharf casino, hotel, residential, restaurant and upmarket leisure precinct, which covers several blocks of prime CBD land in Brisbane, is well under way. It is too big and too far advanced to fail. Ms Fentiman said on Tuesday that Queensland’s Office of Liquor and Gaming Regulation had been working with Queensland Police and Australia’s anti-money laundering unit, Austrac, to investigate the allegations that had emerged about the Star Group in Sydney. “OLGR have now gotten to a point in their investigations where they do think we need an independent expert review to look at the ongoing suitability of Star to hold a casino licence,” she said. The terms of reference will be released next week. The framework of the inquiry, including public hearings and compulsion powers, will be vital.

In the event Star was found not to be suitable to hold a casino licence, Ms Fentiman cited the precedent of similar findings against Crown in WA and Victoria. “They have given Crown a temporary two-year licence on the condition that they meet all of the expectations of the regulator and they put in place a special manager, basically to oversee every aspect of operations at Crown casinos,” she said. While not pre-empting the Queensland review, she said “even if a casino is found not to be suitable, there are things we can put in place provisionally to make sure they do meet all of the expectations of the regulator and the community”. That is the correct approach to ensure probity and transparency.