The Queensland division of Star Entertainment Group has been labeled “inappropriate” to possess a permit in Queensland following an inquiry into the company’s operations.
The Attorney-General stated that Star Entertainment Group was “inappropriate” to hold a permit in Queensland, a conclusion reached after a thorough examination of the company’s operations. The examination, initiated in June, investigated a variety of matters and ultimately revealed a series of systematic failures.
The findings largely correspond with those of Adam Bell SC’s report into Star Entertainment Group’s activities in New South Wales, which also concluded that the operator was inappropriate to hold a permit in that state. While the report itself didn’t explicitly use the term “inappropriate,” the state government ultimately adopted that conclusion.
“Considering the serious and concerning findings of the Gotterson Review and his suggestions on suitability, I have decided that Star Entertainment Group is not suitable to hold a permit in Queensland,” the Attorney-General stated.
Some specific issues included Star Entertainment Group’s “deliberate attempts” to intentionally mislead banks and regulators to conceal the true purpose of UnionPay transactions, in violation of China’s capital flight laws. The investigation also discovered that Star Entertainment Group had attempted to foster relationships with individuals linked to criminal organizations and encouraged them to wager, despite explicit advice from the police commissioner against doing so. In one instance, Star Entertainment Group even presented a $50,000 Rolex watch to such an individual to entice them to wager.
In the meantime, the inquiry also uncovered that the organization had shortcomings in social accountability, significant deficiencies in anti-money laundering and counter-terrorism financing procedures, and considerable concerns regarding the company’s past dealings with junket operators.
Fentima outlined the subsequent steps for Star Entertainment, which might respond before disciplinary action is taken.
She stated: “According to the law, Star Entertainment will have the opportunity to respond to the findings through a formal process once a formal determination of unsuitability is made.”
“Following the formal process, the government will be able to take a variety of corrective actions, including penalties, suspension or revocation of the license, and, as Mr. Gotterson has suggested, the appointment of a special administrator, as has been done in Victoria.”
The report also included twelve recommendations for the casino and the state government to ensure that similar incidents do not occur again. These recommendations include amending the Casino Control Act to allow for the appointment of special administrators, initiating regular investigations of all Queensland casinos paid for by operators, making regulatory fees a condition of the license for all licensees, increasing efforts to prevent players with criminal connections from gambling, and new social responsibility measures.
Suggested social responsibility measures include implementing cardless gaming, cashless gaming, mandatory player limits, play and break systems, and the collection of player data.
The highest penalty for violations will also be raised to $100 million.
The administration stated that it concurred with Mr. Gottersen’s suggestions and would take action.
Operators indicated that they would collaborate with officials on the subsequent steps.
“Star Entertainment Group is presently examining the report and the matters brought up by Mr. Gottersen and will continue to work with the Office of Liquor and Gaming Regulation (OLGR),” the company declared.
The state government stated that it accepted in principle the recommendations made by Mr. Gottersen in his reform report.
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Mia "Mystique" Turner