The **permit** granted to Star Entertainment Group in Queensland has been declared **inappropriate** following an examination of the group’s activities in the region.
The review, declared in June, scrutinized a variety of matters and uncovered a series of systematic shortcomings.
The discoveries are generally in line with the findings of Adam Bell SC’s inquiry into Star Entertainment Group’s operations in New South Wales, which determined the operator unfit to possess a license in that state. While the report itself did not employ that wording, the state government did.
“Considering the gravity and troubling discoveries of the Gotterson Review and his recommendation on suitability, I deem Star Entertainment Group to be unsuitable to hold a license in Queensland,” the Attorney-General stated.
Some specific problems included Star Entertainment Group’s “intentional efforts” to deliberately deceive banks and regulatory bodies to conceal the true nature of UnionPay transactions, in violation of Chinese capital flight regulations. Star Entertainment Group was also discovered to have connections with individuals associated with criminal organizations and encouraged them to gamble, disregarding the direct counsel of the Police Commissioner, in one instance presenting a $50,000 Rolex watch to such an individual to entice them to gamble.
In the meantime, the inquiry also uncovered that the organization had shortcomings in social accountability, significant gaps in anti-money laundering and counter-terrorism financing procedures, and serious concerns about the company’s past dealings with VIP room operators.
Fentima outlined the subsequent steps for Star Entertainment, which may respond before disciplinary action is taken.
She stated: “According to the law, Star Entertainment will have the opportunity to respond to the finding through a formal process once a formal determination of unsuitability is made.”
“Following the formal process, the government will take a range of corrective actions, including fines, suspension or cancellation of the license, and the appointment of a special manager as suggested by Mr. Gotterson, as was done in Victoria.”
The report also included 12 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 a special manager, having operators pay for regular investigations of all Queensland casinos, regulatory fees for all licensees as a condition of their license, strengthening efforts to prevent players with criminal connections from engaging in gambling, and new social responsibility measures.
The proposed social responsibility measures include implementing card-only gaming, cashless gaming, mandatory player limits, play and rest systems, and the collection of player data.
The highest penalty for rule violations will be raised to $100 million.
The state administration indicated its general agreement with the suggestions presented by Gotterson in his reform document.
Industry leaders stated their intention to collaborate with regulatory bodies on subsequent actions.
“Star Entertainment Group is presently examining the report and the matters brought up by Mr. Gotterson and will continue to work with the Office of Liquor and Gaming Regulation (OLGR),” the organization declared.
The government issued a statement, “We concur with Mr. Gotterson’s proposals and will take suitable measures.”
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