Put up or shut down: Star sent show cause notice over its casino licences
The Queens Wharf casino would not be allowed to open until its licence holder Star Entertainment could demonstrate its suitability.
Star is facing potentially severe penalties
The $3 billion Queens Wharf project, which includes a casino to replace the Treasury casino, is expected to be opened in the second half of 2023 after being delayed by Covid-related issues in construction.
But late yesterday the Attorney General Shannon Fentiman issued a show cause notice to Star following a determination that the licencees were unsuitable to hold a casino licence.
It follows revelations in the Gotterson and Bell inquiries which included how the company allowed and encouraged people banned from gambling at its Sydney casino to gamble in Queensland. There was also evidence given about how the casino had covered up the true purpose of transactions done for Chinese gamblers on China Union credit cards.
The notices give the company the opportunity to show cause as to why disciplinary action should not be taken against them.
Star has until November 25 to respond.
Fentiman said that while it was important the Government did not pre-empt the outcome of the show cause notices, there was legislation that allowed for a range of actions that could be taken against Star.
It included fines of up to $100 million and the appointment of a special manager.
Both of those actions have been taken in NSW.
Star not only holds the licence for the casino but is a shareholder in Destination Brisbane, which is developing the $3 billion Queens Wharf project.
The licensee of the new Star Brisbane casino, Destination Brisbane Consortium (DBC), was also found to be unsuitable due to their association with The Star Entertainment Group.
The Government said no show cause has been issued to Destination Brisbane at this time because this casino was not presently operational, “but it will not be permitted to open until its licensee can demonstrate suitability”.
ASIC is also investigating the actions by Star and AUSTRAC was also expected to take its own actions.
Star said the show cause notices were served on the licensee of the Treasury Brisbane and the Star Gold Coast.