Government responds to The Star review
Published Thursday, 06 October, 2022 at 10:10 AM
Attorney-General and Minister for Justice, Minister for Women and Minister for the Prevention of Domestic and Family Violence
The Honourable Shannon Fentiman
The Palaszczuk Government has released the final report following the review of the Queensland operations of The Star Entertainment Group, along with its response.
Attorney-General and Minister for Justice Shannon Fentiman said the independent expert review conducted by the Honourable Robert Gotterson AO KC made 12 recommendations to enhance the integrity, minimise the potential for harm, ensure probity and restore public confidence in the operations of Queensland casinos.
“Making sure Queensland casinos operate lawfully is a priority for the Government,” the Attorney said.
“That’s why I am pleased to announce that the Palaszczuk Government supports in principle all recommendations of this review.
“I would like to thank Mr Gotterson and Counsel Assisting Dr Jonathon Horton KC and Ms Angela Hellewell for their work in conducting this important review.”
The Government instigated the review in June 2022 to examine serious issues with the operation and governance arrangements of the Star Group.
Mr Gotterson’s inquiries were informed by public hearings, the findings of the independent review of The Star Pty Ltd conducted by Mr Bell SC in NSW, and the Queensland regulator’s investigations and compliance work.
The Attorney said the review examined a broad range of issues, and highlights major failings and concerns, including:
- A concerted effort on the part of The Star to characterise China UnionPay transactions as related to hotels when the primary use was gambling
- Although The Star has now ceased all junket operations and indicated they will not revert to group junket operations, there will be a temptation for this to be reversed in the pursuit of future commercial objectives
- The legislation should be clarified to oblige the casino operator to make sufficient suitability enquiries of players prior to entering into agreements for premium junket arrangements
- The Star actively encouraged individuals who had been excluded at the direction of Police Commissioners in NSW and Victoria to gamble at its Queensland casinos
- Serious deficiencies with The Star’s anti-money laundering program which, despite expert advice, persisted over a number of years
- The Star’s Responsible Gambling program, needs further and more rapid improvement, including appropriate resourcing
- The Star was not forthcoming or transparent in its dealing with its banker or the Queensland regulator, and its actions were indicative of a one-eyed focus on profit and money.
As a result of these findings, and the findings of Mr Bell SC’s Inquiry in NSW, Mr Gotterson found that the actions of The Star left open a finding of unsuitability to hold a casino licence in Queensland.
“Considering the serious and concerning findings of the Gotterson Review and his advice regarding suitability, I have formed the view that The Star is unsuitable to hold a licence in Queensland,” the Attorney said.
“In accordance with the legislation, once a formal determination of unsuitability is made, The Star will be given the opportunity to respond to that finding through a show cause process.
“Following the show cause process, a range of remedial actions will be available to Government, including fines, suspending or cancelling licenses, and as recommended by Mr Gotterson, appointing a special manager, as has been done in Victoria.”
The Queensland Government supports in principle all 12 recommendations of the Gotterson review, these include:
- As a priority, amending provisions in the Casino Control Act to allow for the appointment of a Special Manager to increase supervision and integrity of operations
- With powers akin to those in the NSW Casino Control Act, institute periodic investigations into the suitability of all Queensland casinos paid for by the casino
- Casino licensees to pay a supervision levy as a condition of their licence
- A mandatory Code of Conduct for Safer Gambling with significant fines for non-compliance
- Casinos be required to make reasonable endeavours to exclude persons subject to the exclusion directions of Police Commissioners in other states
- A number of recommendations to improve gambling harm minimisation, including mandatory carded play and limits on cash transactions.
The Government has also determined to raise the maximum penalty that can be imposed on a casino to a proposed $100 million.
Mr Gotterson found no suggestion of any inappropriate interference by the Minister of the day or Government in regulatory decisions relating to The Star. Similarly, Mr Gotterson did not find sufficient justification to change fundamentally the structure of the Queensland regulator.
However, in regard to the Queens Wharf Financial Commitment Agreement regulatory restrictions and compensation clauses, he noted that the State legislature should not be fettered in its capacity to impose controls on casinos or compensate them in any way for having done so.
Government has agreed with Mr Gotterson’s advice and will act accordingly.
The report can be found online here: https://www.justice.qld.gov.au/initiatives/external-review-qld-operations-star-entertainment-group
Media contact: Phoenix Campbell 0439 949 719