A Queensland government inquiry into the business practices of The Star Entertainment Group will examine allegations that as much as AU$55 million (€38.09 million) in gambling funds from Chinese high rollers was disguised as room and entertainment charges.
The inquiry, which was ordered by Queensland’s attorney general, Shannon Fentiman, is currently under way to determine whether or not the Star Group is fit to retain its gambling licenses in Queensland. The group is also under scrutiny for it business practices in New South Wales.
The inquiry will look into business dealings at the groups’ Gold Coast and Treasury Brisbane casinos and is taking place at in Brisbane Magistrates Court overseen by retired Appeal Court judge Robert Gotterson.
Counsel assisting, Jonathan Horton, spoke to the inquiry of the casino’s efforts to facilitate gambling for high roller Chinese clients. This allowed the gamblers to circumvent Chinese currency restrictions introduced by the National Australia Bank (NAB), the Star Group’s bank.
Horton explained:
“The Star would suggest a process involving patrons using the terminals to debit funds from their China UnionPay card to credit their hotel account. The patron would then take a receipt of their hotel credit to the cage, accompanied by a VIP executive host, and exchange it for cash or chips. The effect of this was that all charges on the China UnionPay card appeared as hotel and general expenses, when part at least was used, or intended to be used, for gambling.”
The inquiry has heard that in November 2019 and March 2020, NAB requested proof that high roller clients were spending their money on entertainment and room charges and not in the casino. NAB confirmed that Star’s response made no suggestion that the funds were used for gambling in any way.
Despite Star informing the NAB that it would no longer accept China UnionPay cards at NAB terminals in its properties, Horton said that as much as AU$55 million (€38.09 million) was already spent using this method.
The inquiry has also heard that some patrons who were excluded by order of the police from Star’s venues in New South Wales, were then offered incentives to visit Star’s casinos in Queensland instead.
Queensland Government endorsed casino stakeholder with Triad links
An investigation carried out by ABC network in Australia has uncovered evidence to suggest that Chow Tai Fook, a company endorsed as a fit and proper partner in Star’s casino development at Queen’s Wharf, has links to organised crime.
Chow Tai Fook is a 25% stakeholder in the new casino and will also own 50% of the development’s surrounding apartment complexes.
However, the ABC investigation has revealed that the company and its associate companies have been linked to Chinese organised crime for decades. According to the report, the government allowed Chow Tai Fook to become a major shareholder despite the very clear indication that the company has continued links with companies or associates that are still currently involved with or are a party to illegal activities. This contravenes Queensland laws that state that any shareholder associated with anyone of ill-repute can become a partner in a local business.
Image credit: John / CC BY-SA 2.0
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.