The results of the Gotterson Review, which commenced in June, have unveiled a range of institutional failures within Star Casino. These findings align with those previously discovered in Adam Bell SC’s report on Star’s activities in New South Wales, which deemed the operator unsuitable to hold a license in the state. While the review report does not explicitly label Star as unsuitable, the Queensland state government has made that determination based on the serious and concerning findings. The attorney-general has asserted that Star is unsuitable to hold a license in Queensland, citing the advice provided in the Gotterson Review.
Key Issues Uncovered:
The review highlights several significant issues related to Star’s operations. One major concern is the casino’s deliberate effort to mislead banks and regulators regarding the purpose of China UnionPay transactions, which is a violation of Chinese capital flight laws. Additionally, Star was found to have actively sought individuals connected to criminal organizations, encouraging them to gamble despite direct advice from police commissioners. In one instance, Star even provided a person with an AU$50,000 Rolex watch as an inducement to gamble.
The review also identified social responsibility failings, serious deficiencies in anti-money laundering and counter-terrorism financing practices, and raised concerns about Star’s historical dealings with junket operators.
Next Steps and Recommendations:
Following the formal determination of unsuitability, Star will be given an opportunity to respond through a show cause process, as mandated by the legislation. Remedial actions will be available to the government after this process, including fines, license suspensions or cancellations, and the appointment of a special manager, as recommended by Mr. Gotterson and previously implemented in Victoria.
The review report includes 12 recommendations to prevent similar events from occurring in the future. These recommendations involve amending the Casino Control Act to allow for the appointment of a special manager, conducting periodic investigations of all Queensland casinos funded by the operator, implementing a supervision levy for all licensees, increasing efforts to prevent criminally-linked players from gambling, and introducing new social responsibility measures. The proposed social responsibility measures include carded play, cashless gaming, mandatory player limits, a play and break system, and the collection of player data. Furthermore, the maximum penalty for non-compliance is set to be raised to AU$100 million.
Acceptance of Recommendations:
The Queensland state government has stated its agreement “in principle” with the recommendations made by Mr. Gotterson. It has committed to taking appropriate action based on his advice.
Star’s Response:
Star Casino is currently reviewing the report and the matters raised by Mr. Gotterson. The operator intends to work cooperatively with the Office of Liquor and Gaming Regulation (OLGR) on the next steps.
The findings of the Gotterson Review have brought to light serious failings within Star Casino. The Queensland state government’s determination that Star is unsuitable to hold a license in the state underscores the significance of the issues identified. The implementation of remedial actions and the adoption of recommended reforms are crucial in preventing similar incidents in the future. It is now imperative for Star and the authorities to collaborate effectively to address the identified shortcomings and ensure the integrity and responsible operation of the casino industry.