United States
United Kingdom
Summary
- Star Entertainment should not be allowed to run its Sydney casino due to serious failures
- The public inquiry is hearing closing submissions on Star’s suitability to hold its Sydney license
- A final report on the inquiry will be released in the coming months
After hearing evidence across 36 days on Star Entertainment’s regulatory failings and illegal practices, a public inquiry has been told the casino giant is not suitable to hold a license in Sydney.
Star Entertainment has been the subject of a public investigation led by the New South Wales gaming regulator over allegations the casino operator enabled fraud, money laundering, and organized crime at its Pyrmont property.
Multiple Failures Make It Unfit to Hold Sydney License
During the 36-day inquiry, Star’s senior managers admitted to committing serious shortcomings especially in overseeing the casino’s VIP gambling unit, allowing it to be infiltrated by money launderers and organized crime gangs.
The inquiry heard that the casino allowed a Chinese high roller with potential money laundering links to turn over $2 billion at its Sydney venue. In another instance, a casino staff provided false source-of-funds documents to the Bank of China in Macau to enable deposits of high rollers and make it appear like the funds were earned purely through gambling.
The casino was also exposed to having committed legal breaches when it allowed crime-linked junket operator Suncity to run an illegal cage at its Sydney property while also accepting gambling payments through Chinese debit cards which amounted to $900 million.
In her closing submissions, counsel assisting the inquiry, Naomi Sharp SC, pointed out multiple serious failings committed by the casino’s board, senior managers, risk management group, and its legal team which constitute unsuitability to hold a gaming license.
Since the inquiry began, several top executives at the casino have stepped down, including former managing director and CEO Matt Bekier. However, the resignation of these senior executives isn’t enough to make the company suitable for a casino license, according to Sharp.
Sharp said casino operators must remain compliant with the law, observe utmost honesty throughout their operations, avoid exploiting the gamblers, and not tolerate any illicit activity and unethical behavior. Additionally, they must also put in place measures to combat gambling-related harm.
Sharp said Star fell short in terms of adhering to multiple code of conduct requirements.
Inquiry Continues
The inquiry will continue to hear closing arguments over the next few days, giving Star the opportunity to explain its side and prove that it deserves to retain its license in Sydney.
Adam Bell SC will be responsible for releasing a final report on the matter which he will then submit to the NSW’s Independent Liquor and Gaming Authority (ILGA). That report will be out by the end of August.
