Australia's former judge appointed to probe The Star's Queensland casinos; inquiry timeline now set

After it was announced that the state of Queensland will conduct a new inquiry into Australian casino giant The Star Entertainment Group, following a similar ongoing probe in New South Wales, former Appeal Court Justice Robert Gotterson AO has now been appointed to lead an external three-month review starting July into the company's operations in Qld to decide if it is fit to run its casinos in Brisbane and on the Gold Coast.

The inquiry will have the power to directly question Star employees or other relevant people, take submissions and hold public hearings. The probe will look at the casinos’ commitment to anti-money laundering responsibilities, management of VIP patrons, efforts to help Chinese nationals bypass gambling restrictions, exclusions of banned patrons and approach to harm minimization.    

The Palaszczuk government bowed to pressure to launch an independent review of  Star’s Queensland operations last month after evidence of alleged law-breaking was revealed at the NSW inquiry. The inquiry into Star in New South Wales examined allegations that the operator enabled suspected money laundering, organized crime, fraud and foreign interference at its Sydney property, with evidence suggesting that gang-linked junket operator Suncity ran an illegal cage at the casino.

The purpose of the Queensland inquiry will be threefold: to determine if Star’s operations in the state are consistent with law; whether Star is fit to hold the licenses to its Brisbane and Gold Coast properties; and whether there are further means to “restore public confidence in casino operations” after recent inquiries found rival Crown was unfit to hold its interstate licenses.

Former Appeal Court Justice Robert Gotterson

Gotterson will have the powers of a royal commissioner to summon evidence, cross-examine witnesses and hold public hearings to investigate the Star’s suitability to run its Queensland casinos. He will also be able to draw on evidence from the review into Star Sydney, which will hand down its findings on whether the group is fit to operate its casino on Darling Harbor in late August.

The inquiry will be assisted by Jonathan Horton QC and is expected to report back to Attorney-General Shannon Fentiman by September 30, less than a month after the final NSW report is due. Fentiman stated plans are on foot to strengthen Queensland’s gambling laws and intends to invest more than AUD 4 million in the next four years to boost law enforcement at the casinos. 

In the light of this move, Star has sought to distance its Queensland operations from the ones in NSW, and pushed back on several proposed measures, including the ability to apply new financial penalties for past breaches. 

Star's new CEO Robbie Cooke

On Wednesday, Star announced the appointment of new CEO Robbie Cooke, former Tyro Payments and Tatts Group boss, as the group hopes to “restore confidence”. Previous CEO Matt Bekier and chairman John O’Neill both resigned amid the failures by the group aired in the NSW inquiry. 

Cooke will have to hire executives to replace those lost during the process, and contend with a board undergoing significant renewal. The new CEO still needs to pass probity tests from the NSW Independent Liquor and Gaming Authority before effectively taking over.