Chinese poured $55m through Star’s Queensland casinos

Chinese highrollers were allowed to disguise $55m in gambling payments as hotel expenses at Star Entertainment’s Brisbane and Gold Coast casinos, in a continuation of alleged money-­laundering practices.

The proposed $3.6 billion Queen’s Wharf development.

Chinese highrollers were allowed to disguise $55m in gambling payments as hotel expenses at Star Entertainment’s Brisbane and Gold Coast casinos, in a continuation of alleged money-­laundering practices uncovered at its Sydney operation and in defiance of warnings from Star’s bank NAB.

An inquiry into Star’s Queensland business starts public hearings in Brisbane on Tuesday, as the Queensland government ­resists calls 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 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.

A senior source close to the Queen’s Wharf transaction said even if their CVs were removed from the bid, they were still likely to be “sitting in the office in Hong Kong”.

Acting Queensland Premier Steven Miles said on Monday that the CTF alle­gations were “concerning” and insisted the inquiry would “get to the bottom” of the probity process, but The Australian understands the inquiry head, retired Court of Appeal judge Bob Gotterson, has no immediate plans to widen its scope.

Queensland Deputy Premier Steven Miles. Picture: Liam Kidston

Meanwhile, an Office of ­Liquor and Gaming Regulation investigation, which delivered an interim report to the government on April 21, discovered Chinese gamblers had pumped $55m through Star’s Brisbane and Gold Coast casinos using China UnionPay accounts.

NSW’s Bell inquiry into Star’s Sydney casino heard the 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.

The practice continued despite Star’s banker, NAB, warning Star in 2016 about scheme rules, asking a casino official “if we were aware that China UnionPay transactions were not to be utilised for gaming ­purposes”.

Star created “sham” invoices to give to NAB to pass off the gambling transactions as hotel costs, referring to room numbers and duration of stay, with the Bell ­inquiry hearing the use of the CUP debit cards created a money-­laundering risk.

The CUP payment channel was shut down in March 2020, the Sydney inquiry heard.

In NSW, between June 2013 and March 2020, Star allowed 1307 patrons to use the CUP debit cards to withdraw $908m, disguised as hotel expenses using “sham documentation”.

The Gotterson inquiry will first hear from witnesses with ­experience of gambling addiction, and three Star Entertainment senior executives: acting chief executive Geoff Hogg, ­domestic and international casino marketing Chris Peasley, and anti-money launder/counter-­terrorism financing compliance general manager Howard Steiner.

Mr Hogg is one of the last remaining executives or board members after the damning NSW hearings, and will be asked why highrolling gamblers banned from interstate casinos were ­incentivised to patronise the Star’s Gold Coast operation.

Star Queensland managing director Geoff Hogg. Picture: Scott Powick

Star courted Melbourne’s John Khoury with a Rolex watch, the use of a private jet, and top-end hospitality. He was permitted to continue gambling at Star on the Gold Coast until December 10 last year, despite being banned from Star Sydney by the NSW police commissioner in 2012.

Attorney-General Shannon Fentiman said the recent alle­gations about CTF were “incredibly concerning”.

Star recorded a $199m annual loss on Monday. Interim chair Ben Heap declined to comment on media reports about partner Chow Tai Fook’s alleged links.