Star casinos ‘focused only on profits, money’
Casino giant Star Entertainment had a ‘one-eyed focus on profits and money’ and failed to ban suspicious high-roller gamblers despite serious red flags, an inquiry has been told.
Casino giant Star Entertainment had a “one-eyed focus on profits and money” and failed to ban suspicious high-roller gamblers despite serious red flags, putting the integrity of Queensland casinos in “serious jeopardy,” an inquiry has been told.
An independent review of Star’s Brisbane and Gold Coast operations – presided over by retired Court of Appeal judge Robert Gotterson – has heard that the company did not exclude gamblers in Queensland who had been banned from the Star Sydney by order of NSW police.
Counsel assisting Mr Gotterson, barrister Jonathan Horton QC, on Monday delivered the first stage of closing submissions to the inquiry, arguing that Star had risked “infiltration by criminal elements” by not prohibiting certain gamblers from patronising their Queensland casinos.
“The errors placed in serious jeopardy the integrity of Queensland casino operations,” he said.
Until 2019, it was not Star’s policy to automatically ban people who had been banned in other states from gambling at their sites.
And the new exclusion policy was not fully implemented until May this year.
The inquiry has previously been told that two gamblers – codenamed Person One and Person Two – were not banned in Queensland until years after they were excluded from casinos in other states, despite many red flags.
Person One was suspected of being involved in money laundering, and twice brought bags stuffed with cash to the Gold Coast casino to gamble.
On one occasion, the notes were wet and dirty in a blue cooler bag; in March last year, he presented $149,000 in cash in a Chemist Warehouse plastic bag to a Star cashier.
Despite this, Person One – who gambled between $10m and $15m at Star on the Gold Coast in 15 years – was consistently wooed by Star and showered with gifts, including a $52,000 gold Rolex watch, concert tickets, private jet flights and limousine rides.
In internal emails, Star’s chief of domestic and international casino marketing Chris Peasley described as a “genius idea” Person One being presented with a custom-made cake in the shape of a Rolex for his milestone birthday. The real $52,000 Rolex was not quite ready.
Mr Horton said some of the language used by Star to pursue gamblers who should have been banned showed a “one-eyed focus on profits and money”.
He said Star disagreed, and merely suggested that the language was “unfortunate and distasteful”.
Person Two was in the top 10 table players at Star’s Gold Coast casino, and was not banned from the Queensland site despite media reports he had suspected links to the Calabrian ’Ndrangheta mafia, and existing bans from casinos in NSW and Victoria.
Barrister Gareth Beacham QC, for Star, told Mr Gotterson that the company, as well as its interim chief executive Geoff Hogg, conceded the gamblers should have been excluded at a much earlier time.
“These things will not happen again under the current scheme, policy and leadership,” he said.
Mr Gotterson said there seemed to be “glaring deficiencies” in Star’s old exclusion policy.
The retired judge is due to report back to Attorney-General Shannon Fentiman by the end of September
But more fulsome submissions and recommendations – including advice about whether Star is fit to keep its Queensland casino licences – will be given to the government after the Bell inquiry into Star’s Sydney casino delivers its findings this week.