A comprehensive report has shed light on a series of alarming allegations surrounding The Star Sydney, including significant compliance breaches and social responsibility failures. The report, which focuses on the activities in a room called “Salon 95,” raises concerns about the operator’s potential involvement with organized crime through its association with SunCity, a junket operator.
The report also exposes security camera blind spots and instances of misleading regulators. Furthermore, it highlights social responsibility failings, such as allowing prolonged gambling and the provision of alcohol as an inducement. The NSW Independent Casino Commission (NICC) now has the authority to determine disciplinary actions based on the findings of the report.
Breaches in Compliance and Potential Criminal Infiltration:
The report brings attention to activities within “Salon 95,” where The Star Sydney granted the rare privilege of operating a second cash cage to a junket operator, SunCity. This arrangement raises concerns about potential criminal infiltration, as SunCity’s founder and CEO, Alvin Chau, was arrested and charged with leading a “triad organization.” Granting control over sensitive aspects of casino operations to a group potentially linked to organized crime undermines the operator’s anti-money laundering and counter-terrorism financing strategies. The report highlights instances captured on security camera footage where SunCity staff engaged in questionable behavior, displaying a disregard for imposed rules.
Misleading Regulators and Internal Control Breaches:
During the inquiry, the report reveals that Graeme Stevens, the regulatory affairs manager at The Star, admitted to knowingly misleading the NSW regulator regarding the nature of the service desk in Salon 95. This deception occurred when the casino sought to submit changes to the room with the regulator. The report concludes that The Star was contravening its internal control manual, presenting a significant breach of the operator’s license and a violation of the 1992 Casino Control Act.
Social Responsibility Failings:
In addition to compliance irregularities, the report highlights substantial social responsibility failings within The Star Sydney. Instances of players gambling for extended periods without intervention from casino staff, the provision of alcohol as an inducement to gamble, and a lack of enforcement of social exclusions are among the principal failings documented. The report describes personal accounts of vulnerable patrons exposed to gambling harms, illustrating how uncontrolled gambling can transition from entertainment to exploitation.
Implications and Disciplinary Actions:
The NICC, empowered by recent reforms, now holds the responsibility of determining disciplinary actions against The Star Sydney based on the report’s findings. The operator has been given 14 days to respond to the report before potential enforcement actions are taken. While the exact nature of the disciplinary actions remains uncertain, the NICC has the authority to impose penalties ranging from fines to the suspension or revocation of the casino license.
The damning report reveals extensive compliance failures, potential criminal infiltration, and social responsibility shortcomings at The Star Sydney. The findings underscore the need for enhanced regulatory oversight, stronger risk management, and a culture of compliance within the casino industry. The NICC’s role in determining disciplinary actions demonstrates the commitment to maintaining the highest standards of integrity and protecting patrons from harm. It is crucial for The Star and the broader gambling sector to address these issues promptly and effectively to restore trust and ensure a responsible and compliant operating environment.