A property developer who was a high roller at Star casino spent nearly $100 million gambling on a prohibited Chinese debit card, an inquiry was told.
The inquiry is investigating The Star Entertainment Group's suitability to run its Sydney casino.
Phillip Dong Fang Lee was one of the casino's largest patrons, and the inquiry has heard he frequently used a China Union Pay (CUP) card for gambling.
These cards were supposed to be restricted to non-gaming expenses due to the risk of money laundering and China's strict rules to prevent money leaving the mainland.
Documents shown to the inquiry indicate Mr Lee was the most prolific user of CUP cards at Star casino, spending nearly $100 million on them.
Another document showed Mr Lee turned over $2.27 billion and lost about $57 million while gambling between 2007 and 2021.
Counsel Assisting Naomi Sharp SC put to Star's general manager of financial crime and investigations, Kevin Houlihan, a series of emails from 2015 raising concerns of Mr Lee's behaviour.
"Are you aware on 4 January 2015 the head of credit and collections, Adrian Hornsby, emailed his staff to say that China Union Pay is not to be used as Philip Dong Fang Lee's personal money changer?" Ms Sharp asked.
"Not to my recollection," Mr Houlihan replied.
"Were you aware on 4 April 2015 Mr Hornsby directed his staff if Mr Lee doesn't play sufficiently to warrant his CUP withdrawals he will be banned from future CUPs?" she asked.
"Not to my recollection no," he said.
Another email in April that year said Mr Lee had taken $5.15 million worth of "winnings" cheques over a week but was only recorded as actually winning $3.48 million.
"What concerns does that raise for you?" Ms Sharp asked.
"There is the suggestion that Mr Lee has received winnings cheques to the value of more than what he has actively won," Mr Houlihan replied.
"Does it suggest to you The Star is handing over a document showing a source of funds for money that does not represent the correct position?" she asked.
"Without seeing the document … yes it could suggest that," he said.
Another email explained that Mr Lee was asking for "multitudes of requests such as for cash outs of 80k, 90k" and that he was getting "proxy players" to swipe on his behalf.
"Lee went home and took another $12 million in non-winning cheques and plaques and spat his dummy over our decisions not to let him do as he pleases," Ms Sharp quoted from the email.
"Does that suggest to you he's using the CUP card simply to get cash or cheques?," she asked.
"Yes," Mr Houlihan agreed.
"What all of these point to, is the suggestion Mr Lee is basically using his CUP card to withdraw cash and winning cheques rather than for gaming," Ms Sharp said.
"I agree, yes," Mr Houlihan replied.
"And is it your evidence that despite the fact you were the investigations manager, the GM of VIP credit and collections never made this concern known to you?" Ms Sharp asked.
"I don't recall seeing this or ever being made aware of this no," he replied.
The inquiry also heard in 2015 Mr Lee was keeping $20 million worth of high value chips, known as plaques, worth $500,000 each, in his possession.
In one case, he gave two $500,000 plaques to another person which she then played or cashed out.
Mr Houlihan admitted a patron holding onto $20 million in plaques was very concerning.
