A lawyer making a closing case to an inquiry into The Star Sydney says a "litany" of problems with a Chinese debit card scheme for VIP patrons shows the venue is not fit to hold a casino licence.
The NSW gaming authority inquiry has since March examined claims ASX-listed Star Entertainment enabled suspected money laundering, organised crime, fraud and foreign interference at its Sydney casino.
Lawyers assisting the inquiry are closing their case after evidence a notorious gang-linked junket operator ran an illicit cage at the casino, that it did not do enough in dealings with regulators, and that it broke rules on Chinese debit cards.
Naomi Sharp SC on Wednesday addressed the casino's China Union Pay process, which the inquiry has been told enabled VIPs to buy gaming chips in breach of the Chinese financial services company's rules.
There has been evidence Star hid CUP gaming transactions as hotel charges and also misled NAB, which installed the terminals, about the process.
China-born high roller Phillip Dong Fang Lee used CUP "like an ATM" to take out millions of dollars, raising potential money laundering flags, the inquiry has been told.
About $900 million was swiped on CUP cards until it was stopped in 2020.
Ms Sharp said there were a "litany of problems" with the CUP process, including sham documents, misleading of banks and regulators, as well as a possible breach of the casino control act.
She said the scheme also showed Star lawyers were prepared to be dishonest and unethical, its chief financial officer and group treasurer were prepared to mislead the bank, while its regulatory affairs manager was prepared to mislead the state gaming authority.
The barrister pointed to the issues as a reason Adam Bell SC, who is helming the inquiry, should conclude "The Star is not suitable to hold the casino licence".
"This highlights deeply ingrained cultural problems shared across a large number of members of the senior executive," she said.
There has been a clean-out of Star's top brass since the inquiry began, including chief executive Matt Bekier, chief financial officer Harry Theodore, chief legal and risk officer Paula Martin and board chairman John O'Neill.
Ben Heap will assume the role of interim chairman at the embattled casino operator, while Geoff Hogg will become acting chief executive, Star has said.
Earlier, Ms Sharp said a "workaround" the casino used on credit rules as part of the CUP process - known as a temporary cheque-cashing facility - was a "sham".
The inquiry was told the workaround was in fact either not a "true transaction" or an "IOU by the customer" to the casino.
"This was an artifice from the beginning," Ms Sharp said.
Regarding Macau-based junket operator Suncity, which had an access deal to VIP gaming room Salon 95 at The Star Sydney, Ms Sharp said the casino made the choice to "put profit over the need" to properly manage money laundering risks.
The inquiry has been told Star continued to deal with Suncity even after becoming aware in 2019 of a Hong Kong Jockey Club report linking the group to Triads, large scale money laundering and drug trafficking.
Concerns about problems in Salon 95 were not notified to the Star board or to the NSW Independent Liquor and Gaming Authority when it expressly consulted with the Star, Ms Sharp said.
Ms Sharp has argued Star and its Sydney casino are unsuitable to hold a casino licence and are at the start of a long journey to fix corporate failings.
She has criticised Star's "abuse" of legal professional privilege, internal casino investigators, senior managers and the international VIP business allegedly involved in serious failings on dealings with high-value patrons.
Other areas she is expected to address include whether Star failed to pay sufficient NSW gaming duties and if it breached continuous disclosure rules.
The inquiry continues on Thursday.
