Star Entertainment Encouraging Local Patrons to Evade Taxes

Summary

• Whistleblowers out Star and expose fraudulent scheme
• Casino operator asked VIP players to fudge residential status
• NSW regulator to launch investigation

Australian casino mammoth Star Entertainment is under fire for encouraging its local patrons to falsely state that they reside outside New South Wales (NSW).

It is understood that the Star did so to minimize the amount it had to pay to the NSW government in gaming taxes. Insiders leaked that the punters were lured with rebate programs if they signed up for non-NSW resident gaming status.

Bell Inquiry to Conduct Public Hearings In March

The Star Sydney pays taxes on its revenue generated from non-local VIPs at a discounted rate of 10 percent to the NSW government as per their current agreement. The revenue earned from local players is subject to more than double the discounted tax rate.

Other confidential sources from Star attested to the practice and affirmed that the NSW Independent Liquor & Gaming Authority (ILGA) was intimated about it. An inquiry commission led by barrister Adam Bell, SC will also pursue the matter. The commission declared that it would conduct public hearings in light of the multiple allegations of poor practices at Star Entertainment, beginning in March. The charges include organized crime, large-scale fraud, and suspected money laundering within the enterprise’s Australian casinos.

A staff member at the casino disclosed that employees could cash in more bonuses by convincing VIP punters to change their residential status that will allow them to gamble more. Responding to the allegations, The Star released a statement saying that it operates in a regulated environment where the regulator is aware of the eligibility of players in the rebate scheme.

Adding to the numerous charges Star is facing, the Bell inquiry and anti-money laundering agency Austrac will investigate how it allowed Chinese gamblers to use special credit and debit cards to withdraw millions of dollars from Star’s hotel properties.

Star’s Future Uncertain Amidst a Storm of Charges

Star Entertainment is alleged to have encouraged gamblers with criminal ties between 2014 and 2021. The same was confirmed by numerous sources.

Another revelation by Austrac highlighted Star’s failure to confront money-laundering and terror financing risks in its casinos located in Sydney and Queensland. The Star deemed some of the media reports as misleading and said that by adopting an updated program in October 2018, it had complied with Austrac’s recommendations on its audit reports.