The Star Sydney should keep its casino licence because "entirely appropriate" action has been taken by owner Star Entertainment to fix management issues at the embattled gambling venue.
A long-running NSW gaming regulator is hearing closing arguments from lawyers for Star under an inquiry into claims it enabled suspected money laundering, organised crime, fraud and foreign interference at its Sydney casino.
Counsel assisting the inquiry, Naomi Sharp SC, has previously argued that Star and The Star Sydney are not suitable entities to hold a casino licence as management is only the start of a long journey to fix a raft of corporate failings.
On Tuesday, Kate Richardson SC, for Star, conceded that evidence at the inquiry permitted findings of "significant deficiencies and failings" at the casino due to behaviour that failed to adhere to an internal code of conduct and risk policies.
"The Star accepts that evidence means it is open for the review to conclude that as at the commencement of the review The Star was not a suitable person to hold a casino licence," Ms Richardson said.
"The Star respectfully submits that the review should conclude it is presently suitable to hold the casino licence."
She argued that Star and the casino had shown understanding and insight about the seriousness of inappropriate conduct identified at the inquiry, noting the suitability of a company to hold a casino licence "ebbed and flowed" over time.
"The behaviour and culture within the ranks of senior management until very recently fell well short of what is to be accepted," she said.
The inquiry has been told problems among casino top brass included dishonesty, lack of ethics, preparedness to court risk on regulatory non-compliance, a technical approach to laws, and a "disdain" for the regulator.
There has been evidence Star misled banks, breached rules on its use of China Union Pay debit cards, failed in its dealings with notorious Macau-based junket operator Suncity, and allowed an illegal cage to operate in its Salon 95.
On Salon 95, where Suncity had an exclusive access deal, the inquiry has been told the venue dealt with the gang-linked group even after becoming aware of a report linking it to triads, money laundering and drug trafficking.
Ms Richardson submitted that casino staff failed to report to the board with "bells and whistles" about problems in the VIP room, saying it was not a case where directors lacked a "questioning mindset".
If Star's board had known about issues in Salon 95, she said it would have shut the room down and suspended the casino's relationship with Suncity, describing the failure of managers as a "significant breach of trust" placed in it by the board.
The board had responded to problems "entirely appropriately" and "key persons" who failed to stop misconduct were no longer at Star, the barrister said.
"This is more than just a matter of words, the board took prompt action to ensure that those involved in the conduct are no longer involved," she said.
Since the inquiry began there has been a clean-out of Star senior staff, including chief executive Matt Bekier, chief financial officer Harry Theodore, chief legal and risk officer Paula Martin and board chairman John O'Neill.
The inquiry continues before Adam Bell SC.
