Palaszczuk government flags Star Entertainment will keep licence despite probe

The Palaszczuk government indicates it might grant Star ­En­ter­tainment a provisional licence to run its Qld casinos if a new inquiry makes adverse findings against the gambling giant.

Queensland Attorney-General Shannon Fentiman on Tuesday confirmed the government would launch an inquiry into Star’s fitness to run its casinos in Brisbane and the Gold Coast. Picture, John Gass

The Palaszczuk government has indicated it might grant Star ­En­ter­tainment a provisional licence to run its Queensland casinos if a new inquiry makes adverse findings against the gambling giant.

Queensland Attorney-General Shannon Fentiman on Tuesday confirmed the government would launch an inquiry into Star’s fitness to run its casinos in Brisbane and the Gold Coast after revelations of money laundering and fraud at its operations in Sydney.

The new inquiry comes after months of resistance by the Palaszczuk government, which has close ties to Star as the company builds the state’s biggest private development – its new $3.6bn flagship Queens Wharf casino on Brisbane’s waterfront.

It follows mounting evidence of criminal behaviour aired at the NSW inquiry into Star’s Sydney casino, which has prompted an ­exodus of the company’s executives. Similar probes have been launched into Crown casinos in Victoria and Western Australia.

The Queensland cabinet will next Monday consider who will head the inquiry and its terms of reference. Cabinet will also decide on whether the inquiry will hold public hearings or have powers to compel witnesses, including senior Star executives who have quit the company, to give evidence.

At a Media Club lunch, Ms Fentiman said the government had been motivated by revelations at the Sydney inquiry.

“The Palaszczuk government takes the allegations of money laundering and integrity issues very seriously,” she said.

“Investigations by the Office of Liquor and Gaming Regulation into The Star are ongoing, and they are continuing to work with the Queensland Police and AUSTRAC. There will also be an independent expert review into the suitability of The Star to keep its casino licence.”

On Tuesday, The Australian revealed that the viability of Star’s new Queens Wharf casino, due to open next year, is dependent on the “junkets” bringing-in high-end Chinese gamblers and which are now at the centre of money laundering and tax evasion allegations.

A former senior Star employee, who has knowledge of Star’s “business case” for the massive project, told The Australian that it required Queen’s Wharf taking 10 per cent of the junket market coming to Australia.

The source said that junkets at Brisbane’s Treasury casino and The Star on the Gold Coast were run identically to those that operated in Sydney, with gambling “cages” for high-end rollers and the revenues put through the hotel arm of the operations.

Last month, counsel assisting the NSW inquiry Naomi Sharp SC recommended Star be stripped of its Sydney licence, saying a change of management wasn’t enough.

Asked what would happen if the Queensland inquiry made similar recommendations, Ms Fentiman said efforts would be made to keep the casinos open, possibly with a provisional licence.

“Similarly as to what has happened in Victoria and WA with Crown, Crown was found to not be suitable to hold a licence,’’ she said.

“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.

“So even if, and I am not going to pre-empt any of the findings of a review, but 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.’’

The Queens Wharf project promises to deliver the government $1bn in upfront payments and gaming revenues over its first decade of operation.