Some high-risk gamblers were "actively encouraged" – and even incentivised – to travel to Queensland to gamble at Star Entertainment Group's casinos even though "red flags" should have seen them banned, an inquiry has heard.
The inquiry — headed by former Court of Appeal judge Robert Gotterson — is probing Star's operations in Queensland, its compliance with anti-money-laundering responsibilities, junket operations, and the relationship with VIP patrons and high rollers.
Star currently runs two casinos in Queensland – The Star Gold Coast and Treasury Brisbane – and is building the multi-billion-dollar Queen's Wharf casino development in Brisbane's CBD, slated to open next year.
Public hearings kicked off on Tuesday, with counsel assisting Jonathan Horton QC telling the inquiry it would hear evidence about certain gamblers being lured to the Sunshine State after being excluded from venues in New South Wales and Victoria.
"There's the issue of some persons being actively encouraged to come to Queensland and being given benefits to do so, even though -- and this might be an understatement -- red flags existed, which ought to have led to their exclusion, let alone not inducing the person to be here," he said.
Mr Horton told the inquiry there seemed to have been "very serious problems" in terms of inducements for "high value, high risk customers".
"Some of them on no view should have been invited to come to Queensland given the unavoidable suspicions that would arise about their involvement in criminal activity, the source of their money and the fact of exclusion and treatment elsewhere in other jurisdictions," he said.
The inquiry heard in 2019 Star adopted a policy of exclusions, meaning a person excluded from Star Sydney would also be excluded from its Queensland casinos, but it was not retrospective.
"It took prompting from the OLGR [Office of Liquor And Gaming Regulation] so far as we can see for Star to apply the new policy retrospectively and the process took months to complete … finished in about May 2022," Mr Horton said.
The inquiry heard the use of China UnionPay debit or credit card facilities to help facilitate gambling by Chinese nationals – despite Chinese currency movement restrictions – would also come under the microscope.
Mr Horton said the evidence suggested "some $55 million" was transacted in Star Queensland casinos using that process.
"This is less than seems to be the case in New South Wales," he said.
The hearing was told that as Queen's Wharf is not yet operating, it fell outside the scope of the first section of the inquiry, which has the powers of a commission of inquiry.
Meanwhile, the second section of the review involved providing advice to the Attorney-General relating to the ongoing suitability of the Star Group to hold a casino licence.
"We will not in the course of this be investigating suitability as such," Mr Horton said.
"The wider legislative regime puts those questions firmly with the Attorney-General and ultimately the governor in council. This doesn't mean, of course, that the work here is not relevant to the assessment of suitability, and that aspect of things is certainly not lost on us as counsel assisting."
'Significant' anguish from harmful gambling
On Tuesday, the inquiry heard from a witness – whose identity was suppressed – about their own experience with gambling harm.
The man – called "Witness A" – struggled with gambling addiction for 10 years, predominantly at TABs, and told the hearing it had caused "significant" anguish for his family.
"Often it's about the things that are not monetary that I'm gambling with: family, relationships, job, whether [I can] put bread and milk on the table," he said.
He told the inquiry there were times he attempted to ban himself from TAB venues, but he "found out pretty quickly … I could go back into those establishments quite easily".
Asked by Star's legal counsel if he would have supported his self-exclusion at TAB being shared with casinos and RSLs, Witness A said it would have been a positive thing.
He also said betting time limits are part of — but not the entire – solution and asked what else could be done on top of that.
