Banned highrollers lured to Queensland, inquiry into Star Entertainment hears

Gamblers excluded in Sydney because of ‘anti-money laundering considerations’ were still allowed into Queensland casinos, an inquiry into Star Entertainment has heard.

Former Court Of Appeal judge Robert Gotterson. Picture: Philip Norrish

Star Entertainment lured gamblers to Queensland who were banned from interstate casinos over suspected links to money-laundering operations, an inquiry into the gaming giant has heard.

Public grilling about alle­gations of unlawful Chinese gambling, money laundering and dodgy junkets began in Brisbane on Tuesday, as part of an independent inquiry into Star’s Queensland business.

The inquiry heard Star helped highrollers disguise $55m worth of bets as hotel expenses using Chinese debit cards at its Brisbane and Gold Coast casinos.

The practice is in breach of Chinese laws that forbid offshore gaming and increases the risk of money laundering.

It follows evidence at the NSW Bell inquiry earlier this year that Star wrongly attributed $900m worth of gambling transactions as room charges to flout anti-money-laundering procedures.

Queensland’s inquiry, before Robert Gotterson QC, heard gamblers excluded in Sydney because of “anti-money-laundering considerations” were allowed into Queensland casinos until 2019.

Even after Star introduced nat­ional bans in 2019, the policy was not retrospective, allowing people already excluded from the Sydney casino to gamble in Brisbane and on the Gold Coast.

Counsel assisting, Jonathan Horton QC, said it took prompting from the state’s gambling regulator for Star to apply the policy retrospectively, which came into effect in May 2022. “There is the issue of some persons being actively encouraged to come to Queensland and being given benefits to do so, even though, and this might be an understatement, red flags existed.”

Mr Horton said red flags should have “led to their exclusion, let alone not inducing them to be here”.

“Generally (there) seems to have been very serious problems in terms of offering inducements to high-risk, high-value customers; some of them on no view should have been invited to come to Queensland, given the unavoidable suspicions that would arise about their involvement in criminal activity.”

Star’s chief of domestic and international casino marketing, Chris Peasley, has been summoned to give evidence on Wednesday about “encouraging certain people to gamble at the ­casino and offering inducements to make that happen”.

“We will suggest that Mr Peasley was involved in approving gifts to be given to high-risk and high-value customers and that his email exchanges offer some ­insight into The Star’s profit motives in connection with its gambling business,” Mr Horton said. Acting chief executive Geoff Hogg and anti-money launder/counter-­terrorism financing compliance general manager Howard Steiner are also due to give evidence to the inquiry this week.

Star will be probed in Queensland with five case studies to test how it dealt with money laundering “historically and now”.

Mr Horton said Star’s money-laundering program was handled at a “group level”, so “much of what the Bell inquiry traversed is as relevant to Queensland as it was to NSW”.

Public hearings began on Tuesday as pressure mounts on the Palaszczuk government to widen the probe to consider the awarding of the $3.6bn Queen’s Wharf Brisbane riverfront casino contract to Star, despite alleged triad links.

The Australian revealed on Saturday that state probity officials were concerned about Star’s Hong Kong partner Chow Tai Fook’s links with the Macau “godfather of gambling”, Stanley Ho, and his alleged triad connections, but the joint venture was successful after CTF voluntarily removed some people from the bid.

////Mr Horton said Star’s money-laundering program were handled at a “group level”, so believes “much of what the Bell Inquiry traversed is as relevant to Queensland as it was to New South Wales”.

He said there was evidence Chinese highrollers were allowed to disguise $55m in gambling payments as hotel expenses at Star Entertainment’s Brisbane and Gold Coast casinos.

The practice is a continuation of alleged money-­laundering practices uncovered at Star’s Sydney operation and in defiance of warnings from Star’s bank NAB.

“This is an issue which goes to honesty and integrity,” Mr Horton said.

The China Union Pay accounts allowed Chinese highrollers to swipe the card at an in-house NAB terminal and purchase gambling chips, despite Chinese laws that forbid offshore gaming.