Star Entertainment deemed unfit for Queensland casino licence

Star Entertainment Group has once again been taken down a notch, with the Queensland government declaring the operator unfit to hold a licence for its Gold Coast and Brisbane venues.

The announcement came from the Attorney-General, Shannon Fentiman, after an independent inquiry into Star’s casino operations in the state found that the company failed compliance to anti money laundering procedures and even went as far as luring problem gamblers from other states, amongst other things. As it stands, the $3.6 billion Queen’s Wharf casino project Star planned to open in Brisbane next year is now in jeopardy.

The inquiry, which was conducted by former Court of Appeal judge Robert Gotterson, unveiled “major failings” that showed Star as lacking character, honesty and integrity. For instance, the inquiry found that Star hid $55 million, consisting of gambling proceeds from China UnionPay debit or credit cards, as hotel fees while blatantly flouting Chinese laws and deceiving a national bank. Even more shocking is its blatant disregard for anti money laundering rules, where it actively encouraged and incentivised high-risk gamblers to travel to Queensland to play in its casinos. The inquiry also exposed the company having links to organised crime through one of its associates.

According to the AG, “Mr Gotterson found Star was not forthcoming or transparent in its dealings with its banker or the regulator and its actions were indicative of a one-eyed focus on profit.” She added that the operator made a deliberate effort to obscure and mislead the authorities on the nature of its activities.

The AG further stated that a show-cause is now being prepared for the operator to prove why it should be given a casino license in the state. Upon issuance, Star will have 21 days to respond. Talking about punitive measures, Fentiman noted that there are a range of actions the government could take, starting and not limited to directions, censures, fines, suspension of licence and cancellation of licence.

Meanwhile, from the inquiry, Judge Gotterson came up with 12 recommendations “that will ensure Queensland casinos operate lawfully”. The recommendations, similar to those made in New South Wales via the Bell Report earlier this month, include regular investigations into all of Queensland’s casinos which will be paid for by the operators. It also included cashless gaming, mandatory carded play and limits on cash transactions. In addition, Gotterson recommended that a special manager be put in charge of The Star Gold Coast and Brisbane Treasury for the time being. All these recommendations have been accepted in principle by the government.

The verdict in Queensland was the same as the one Star’s Sydney branch received. Ever since the situation came to light in 2021, the shares of the ASX-listed company have fallen 44%. Star has responded by saying that it will look into the report of the inquiry and cooperate with the state government.

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