Star ‘unsuitable’ to hold a casino licence in Queensland, state government says
Star Entertainment has been declared unfit to hold a casino licence in Queensland and will be issued with a notice to explain why it should continue to operate in the state.
Former judge Robert Gotterson’s report into the ASX-listed casino operator was released on Thursday after a public investigation into Star’s conduct in Queensland.
Gotterson found the company was guilty of a serious dereliction of its antimoney laundering responsibilities, had deliberately misled the regulator and had a poor corporate culture with a “one-eyed focus” on profit at the expense of patrons.
However, he left his findings open on whether the company was fit to hold a licence in Queensland, although he said Star’s two casinos were operated in a way that was inconsistent with casino laws.
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The attorney general, Shannon Fentiman, said she had decided Star was not fit to operate casinos in the state after considering Gotterson’s report.
She said the company would be issued with a show-cause notice and given 21 days to respond or face penalties, including having its licences revoked.
“I have formed the view that the star is unsuitable to hold a casino licence in Queensland,” Fentiman said.
“And I have asked the Office of Liquor and Gaming to begin preparing show-cause materials to issue the Star with a show-cause notice.”
The government said it will appoint a special manager to run Star Gold Coast and the Brisbane Treasury casinos in the meantime.
“We have in black and white some damning findings about how this company has operated, how they dealt with the regulator and their obligations to act in the public interest clearly were not taken seriously,” Fentiman said.
The decision could affect Star’s $3.6bn Queen’s Wharf casino and resort development in Brisbane, due to open next year.
“A finding of unsuitability does of course have implications for the casino licence for Queens Wharf but there is still a show cause process to go through, and then a range of options available to government,” Fentiman said.
Gotterson made 12 recommendations to tighten controls in the state’s casino industry – including for venues to go cashless, with patrons to use cards linked to their identification and set with loss limits before they start gambling.
Last month, the New South Wales gaming regulator found Star had repeatedly breached the law, misled banks and allowed criminals to operate with impunity and gamble almost without restraint.
The Queensland inquiry, ordered after revelations emerged in the NSW investigation, heard serious allegations about Star’s conduct in the state.
Former acting chief executive Geoff Hogg admitted Star wasn’t fully upfront with the Queensland regulator when it changed a policy in order to conceal $55m in banned transactions from a Chinese bank.
The company also allowed people banned from its interstate casinos by police over their alleged links with criminal gangs to gamble in its Queensland premises.
It allegedly “pursued” some of them by giving them free private jet flights, luxury accommodation and gifts including a $50,000 Rolex watch, the inquiry heard.