Star inquiry to probe ‘cross-border pollution’

An independent probe into whether Star Entertainment is fit to run casinos in Queensland will investigate whether problems unearthed about its ­Sydney operations ‘came over the border’.

Retired Supreme Court judge Robert Gotterson is leading an independent inquiry into Star Entertainment’s fitness to hold casino licences in Queensland. Picture: Liam Kidston

An independent probe into whether Star Entertainment is fit to run casinos in Brisbane and the Gold Coast will investigate whether problems unearthed about the gaming giant’s ­Sydney operations “came over the border”.

Public grilling about alle­gations of unlawful Chinese gambling, money laundering and dodgy highrolling junkets will begin in August as part of the ­inquiry.

In the opening hearing in Brisbane on Thursday, counsel assisting, Jonathan Horton QC, said the inquiry wanted to determine “to what extent were any problems in NSW ones which came over the border … either because of common governance and practices, or by gamblers excluded there being allowed entry to casinos here, or even being encouraged or incentivised to do so.”

Star’s top brass – including chief executive Matt Bekier and board chairman John O’Neill – have already quit after a NSW review unearthed allegations of fraud, money laundering and criminal infiltration at Sydney’s The Star casino.

Mr Horton said their resig­nations made Queensland’s inquiry “rather different” from NSW’s, but there would be shared elements.

Key functions of Star that seemed to be common across its casinos include its legal department and treasury division, which oversaw bank accounts.

Mr Horton mentioned those divisions because in closing arguments to the NSW Bell inquiry, Star accepted findings of “significant deficiencies and failings due to behaviour not in adherence to the company’s code of conduct and related risk and compliance policies approved by the board”.

The Queensland review, led by retired Supreme Court and Court of Appeal judge Robert Gotterson, will investigate Star's relationship with high-rollers, compliance with anti-money laundering responsibilities and whether the casino giant “actively encouraged” ­people banned from NSW casinos to gamble in Queensland.

It will also examine whether Star disguised gaming trans­actions on Chinese debit cards as hotel expenses. “You might be aware there have been allegations and, I think it is fair to say, some acceptance by the licensee of The Star Sydney that this occurred there,” Mr Horton said.

Public hearings of witnesses will begin on August 23 and at least one Star Entertainment executive is expected to be called, likely acting chief Geoff Hogg.

Gareth Beacham QC, who is representing Star at the Queensland hearing, said: “The Star Entertainment Group will be fully co-operating with this inquiry,”

Mr Gotterson will report to ­Attorney-General Shannon Fentiman by September 30.

Ms Fentiman has said even if the allegations of money laundering and unlawful behaviour were proven at Star’s operations in Queensland, the operator may be granted a provisional licence.

The inquiry comes as Star builds the state’s biggest private development – the $3.6bn Queens Wharf casino on the waterfront.

Premier Annastacia Palas­zczuk ordered the external investigation in June, after months of resisting calls for an independent probe. The inquiry will have the powers of a royal commission, including the ability to interview Star employees or “other relevant persons”, hold public hearings, compel witnesses to give evidence and protect whistleblowers.

The LNP opposition has called for the inquiry’s terms of reference to be expanded after reporting in The Australian revealed Labor lobbyist Evan Moorhead had been hired by Star as a consultant and Star held fundraisers for former ­attorney-general Yvette D’Ath when she was casino regulator.
The Australian understands links between the government, unions and lobbyists will not be specifically investigated in the review.