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‘Very serious’: Qld casino authorities investigating Star allegations

By Matt Dennien

Queensland Attorney-General Shannon Fentiman has confirmed the state’s gaming regulator and police service – along with federal agency Austrac – are investigating Sydney-based Star Entertainment’s anti-money-laundering processes and approach to excluding punters from its casinos, after allegations aired this week.

The casino operator dominates the Queensland market, holding two of the state’s four operational licences, including The Star Gold Coast and Brisbane’s Treasury Casino. The latter will transfer to the new Queen’s Wharf development on its completion next year.

Star’s Brisbane casino operation will transfer from the 25-year-old Treasury Casino to the new Queen’s Wharf development (above) on its completion, expected next year.

Star’s Brisbane casino operation will transfer from the 25-year-old Treasury Casino to the new Queen’s Wharf development (above) on its completion, expected next year.Credit: Star

Under Queensland casino laws, licences can be cancelled or suspended if the holder, casino lessee or operator is convicted of an offence, breaches conditions of the licence, or has associated people deemed not “not suitable” under the Casino Control Act.

Ms Fentiman, who has the power to call investigations into the suitability of licensees, described as “very serious” revelations by The Sydney Morning Herald, The Age and 60 Minutes this week that Star had commissioned confidential reports warning that it was failing to properly combat the risk of organised criminals or terrorists exploiting its Queensland and NSW sites.

“The Office of Liquor and Gaming Regulation is undertaking appropriate investigations, along with the Queensland Police and [anti-money-laundering agency] Austrac,” she said in response to questions from this masthead.

“The investigation will consider the appropriateness and effectiveness of Star’s due diligence processes in relation to anti-money-laundering, and how Star approaches exclusions to ensure people are excluded from all properties where appropriate.”

Along with details of the confidential 2018 reports, other revelations included that punters banned from Crown Melbourne and The Star Sydney by the NSW and Victorian police commissioners because of their organised crime links had been permitted to gamble at The Star Gold Coast.

More than 25 per cent, or $1 billion, has been wiped off Star’s market value in two days. In an ASX announcement on Monday, the company said the reports were “misleading”.

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After revelations about Crown’s own practices in recent years, NSW’s independent Bergin inquiry found the company was not suitable to hold a casino licence in that state – a finding that sparked royal commissions in Victoria and Western Australia.

Now the NSW government has left the door open to public hearings as part of an existing investigation by its regulator into whether The Star Sydney should keep its licence.

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Royal commissions in Victoria and Western Australia, along with a NSW inquiry into Crown’s own practices, found it unsuitable to hold a casino licence. Now the NSW government has left the door open to public hearings as part of an existing investigation by its regulator into whether The Star Sydney should also keep its licence.

Ms Fentiman said she followed the Bergin inquiry and related probes in those states, and her government would consider the outcomes carefully to make “any necessary changes to the regulatory framework”.

Queensland’s gaming regulator began extra ongoing compliance inquiries and activities related to casinos in the state following the Bergin inquiry. It is also working closely with counterparts in Victoria, WA and NSW.

The regulator has specialist inspectors in each of the state’s four casinos, while police have a dedicated presence in Brisbane’s Treasury Casino and The Star Gold Coast to investigate criminal activity.

Star, along with the operators of The Ville Resort Casino in Townsville and The Reef Hotel Casino in Cairns, has recently sought to streamline Queensland’s Casino Control Act, with regulations tabled in Parliament on Monday.

The amendments will allow winners to bypass inspectors in making a claim for payment and go straight to the chief executive if a casino operator or employee cannot immediately resolve the claim.

They also remove the ability of the minister to require a character reference for someone being investigated to determine whether they are suitable to be associated with the ownership, management or operation of a casino.

Star currently operates Brisbane’s sole casino licence, which will transfer from the 25-year-old Treasury Casino to the new Queen’s Wharf development, with an additional 800 gaming machines, on its expected completion next year.

A Star spokesperson said: “The Star operates in a heavily regulated industry. We are subject to thorough and ongoing regulatory oversight, including compliance checks and reviews across the company’s operations in NSW and Queensland.”

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Original URL: https://www.watoday.com.au/link/follow-20170101-p58zdg