The Queensland division of Star Entertainment Group has been deemed unfit to retain a permit in Queensland after an examination of its operations.
The Queensland Attorney General declared the verdict, asserting that Star Entertainment Group is unfit to hold a permit in the state based on a thorough evaluation of its operations.
The evaluation, which commenced in June, conducted a comprehensive appraisal of Star Entertainment Group’s operations in Queensland, unearthing a series of grave concerns and systemic defects.
The findings correspond with the conclusions of Adam Bell SC’s inquiry into Star Entertainment Group’s activities in New South Wales, where Bell SC determined the operator to be unfit for a permit. While the evaluation report itself didn’t explicitly employ the term “unfit,” the Queensland government ultimately arrived at that conclusion.
The Attorney General stated, “Considering the serious and concerning findings of the Gotterson Review and his recommendation on suitability, I believe that Star Entertainment Group is not suitable to hold a license in Queensland.”
The evaluation uncovered a range of serious issues, including “deliberate” misdirection of banks and regulators, concealing the true purpose of UnionPay transactions, infringing Chinese capital flight laws. The investigation also revealed that Star Entertainment Group actively sought individuals with ties to criminal organizations, encouraging them to gamble, disregarding direct guidance from the Police Commissioner, and in one instance, presenting a $50,000 Rolex watch to an individual with criminal connections to entice them to gamble.
In the meantime, the inquiry discovered the organization had deficiencies in social accountability, significant flaws in anti-money laundering and counter-terrorism financing protocols, and raised serious doubts about the company’s past dealings with VIP club operators.
Fentima outlined the subsequent steps for Star Entertainment Group, which might respond before disciplinary action is taken.
She stated: “According to the law, Star Entertainment Group will have a chance to respond to the findings through a formal process once it is officially deemed inappropriate.”
“Following the formal process, the government will take a range of corrective actions, including penalties, suspension or revocation of the license, and as per Mr. Gotterson’s suggestion, the appointment of a special administrator, as was done in Victoria.”
The report also includes 12 recommendations for the casino and the state to ensure similar incidents don’t occur again. These recommendations include amending the Casino Control Act to allow for the appointment of a special administrator, having operators pay for regular investigations of all Queensland casinos, regulatory fees for all licensees as a condition of their license, strengthening measures to prevent players with criminal connections from gambling, and new social responsibility measures.
Proposed social responsibility measures include implementing card-only gaming, cashless gambling, mandatory player limits, play and break systems, and collecting player data.
The highest penalty for those who violate the regulations will be raised to A$100 million.
The administration stated it concurs in principle with the suggestions made by Gottersen in his reform report and will take suitable action.
Operators indicated they would collaborate with authorities on the subsequent steps.
“Star Entertainment Group is presently examining the report and the matters raised by Mr. Gottersen and will continue to cooperate with the Office of Liquor and Gaming Regulation (OLGR),” the organization stated.
The government declared in a statement that it “agrees with Mr. Gottersen’s recommendations and will take appropriate action.”
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