A high roller previously banned from a Sydney casino was twice flown to Queensland on a private jet and given a $50,000 Rolex watch from Star Entertainment Group as a birthday gift for "loyalty" to its Gold Coast casino, an inquiry has been told.
Star's domestic and international casino marketing president Chris Peasley denied they were actively "pursuing" the gambler, dubbed 'person 1'.
But he later admitted to the Gotterson inquiry it was not in line with the company's policies around patrons banned interstate.
"We say at the time we were rewarding, recognising loyalty," Mr Peasley said.
"The mere fact that 'person 1' was even allowed to participate in the loyalty program is an inducement or incentive, so I think we've had failings from the get-go."
The admission came after the inquiry examining Star's existing Queensland casino operations, The Star Gold Coast and Treasury Brisbane, heard 'person 1' had been given an exclusion order by the New South Wales police commissioner, banning them from a casino venue, in 2007.
Despite that, 'person 1' was given gifts and benefits for frequenting Star's Gold Coast casino – including a Rolex watch, a custom birthday cake, trips on a private jet in October 2019 and December 2020, and more than $30,000 in compensation payments for losing big, with the list of compensation and benefits he received between 2015 and 2021 spanning 719 pages.
Counsel assisting, Jonathan Horton QC, asked Mr Peasley: "Did that concern you in incentivising this person to come to Queensland?"
Mr Peasley replied: "Person 1 [was] a very longstanding customer of the Gold Coast property … the exclusion order, I believe, was all the way back to 2005-2007 and [he] was regularly travelling to the Gold Coast and being treated as a customer.
"There was a conversation in late 2015, early 2016 … and the conversation was around, well, how should this be viewed or treated going forward?
"The conclusion was, they can go to the property, they can participate in the loyalty program, they can receive those benefits, we aren't to pursue them … we can receive their phone calls, we can make their bookings, and they are to be treated the same as any other customers of their play level."
Mr Peasley told the inquiry the Rolex gift was in recognition of a "milestone" birthday and the patron's "longstanding" loyalty to the Gold Coast venue.
But Mr Horton asked him: "You wouldn't be giving a present or recognising or rewarding him unless you thought he'd return to a Star casino?"
Mr Peasley replied: "I accept that, Mr Horton, the long-term view is yes, you are still trying to secure loyalty in the future."
Asked if he checked about the substantial gifts with Star's anti-money laundering (AML) team, Mr Peasley said he did not think they "got the blessing from the AML team" for the watch.
"We would check with the AML team more broadly around the customer wanting to making bookings," he said.
Mr Horton asked: "Bookings of flights or use of a private jet?"
"I can't speak to that … the first one I was on leave and wasn't aware of," Mr Peasley replied.
'I wouldn't say it caused worry'
During the hearing, Mr Horton asked Mr Peasley if the fact 'person 1' had been excluded by a police commissioner in another state raised concerns the patron's activities "could involve criminal activity in some way, and risk the casino's involvement in that activity?"
Mr Peasley said: "Back at that point in time, I wouldn't say it caused worry.
"I think it caused concern, and again that's why I reached out to the specialists in that area. I don't think I was worried, but it certainly raises a concern, some might say a red flag."
Mr Horton suggested to him: "Your emails really do show that your focus is the profit of the casino's gambling business?"
Mr Peasley responded: "I think in short I would agree that's what a sales team function is – whether you want to call it profit or the right commercial outcome".
"Your focus was achieving numbers in that regard, rather than responsible service of gambling outcomes or indeed meeting anti-money laundering responsibilities?" Mr Horton said.
"I can see how you can see that from the documentation you have," Mr Peasley said.
'We were not in line with the policies'
The inquiry heard Star's exclusion policy from August 2015 barred any activity by staff that "may be considered" to be an "inducement or solicitation" for a person subject to an exclusion order at a Star venue to visit a casino.
Mr Peasley said at the time, he had not seen or read the exclusion policy, but that "it was verbalised to me" and he was not aware of that particular section.
From February 2019, the company's policy prohibited any activities that "may be interpreted" as an inducement or solicitation to the excluded person to gamble in one of their casinos.
"In effect what you did with the cake and the Rolex and other things was really to induce or solicit 'person 1' to visit a casino in Queensland?" Mr Horton asked.
"Looking at the exclusion policies … we were not in line with the policies," Mr Peasley said.
Star's commitment to anti-money laundering responsibilities, the use of China UnionPay debit or credit card facilities, gambling harm minimisation, and instances of people excluded from casinos interstate being incentivised to travel to gamble at Star's Queensland venues are among the key issues being probed at the inquiry.
The review will also provide advice to the Attorney-General about the ongoing suitability of Star Group licensees to hold a casino licence as its multi-billion dollar Queen's Wharf casino development in Brisbane's CBD is set to open next year.
The independent review was commissioned by the state government in June and came after allegations of money laundering and fraudulent activity were aired during an inquiry in New South Wales.
The hearing continues.
