A Star Entertainment senior manager has admitted concerns about local casino players being "poached" by The Star Sydney's lower taxed international rebate program but says there was no "epidemic" of the practice.
Mark Walker, Star Entertainment's senior vice president of premium services operations, was quizzed on Tuesday at an inquiry into the fitness of The Star Sydney - owned by ASX-listed Star - to hold a casino licence.
The royal commission-style inquiry was sparked by damning media reports into Star, including that the gaming giant enabled suspected money laundering, organised crime, fraud and foreign interference at its gaming facilities.
Asked by counsel assisting Penelope Abdiel whether Mr Walker had concerns of poaching of local gamblers by The Star Sydney's international rebate team, the witness said: "There were a couple of instances where that occurred".
Mr Walker, previously a premium guest manager at the Sydney casino, said in the local player sales role it was "his job to defend my local database", but that "sometimes lines got crossed" due to casino sales teams chasing bonuses.
He could not recall if he was ever paid a bonus, which he said was paid linked to "theoretical revenue" targets based on The Star's overall earnings before interest, taxes, depreciation and amortisation.
Mr Walker conceded he was at times frustrated by the international team's poaching but said the casino "got onto it pretty quickly" and the practice was not widespread.
The casino paid the NSW government a lot less tax on international rebate play than on local state play, with local players shifting to the international program effectively giving the casino a bigger tax break, the inquiry was told.
"There wasn't an epidemic, if you put it that way, there was a couple of isolated instances," Mr Walker said.
It was a "coup", the inquiry was told, to in 2018 get iProsperity director Michael Gu - who was set up with diamond club casino membership - to play at The Star.
Mr Gu was granted a $500,000 cheque-cashing facility at The Star, which involved a series of credit checks being performed that showed a source of funds to repay gambling debts was investment company iProsperity, the inquiry was told.
A $500,000 gaming debt later incurred by Mr Gu was paid by another man, Harry Huang, and an additional $100,000 was deposited by the same man into Mr Gu's account, the inquiry was told.
"Did you have any concerns at this point about Mr Gu's liquidity?" Ms Abdiel asked.
"No," Mr Walker said.
"Did you have any understanding of how Mr Huang had $600,000 he could just drop in cash on a friend?" the barrister asked.
"No ... we relied on the cage to highlight any concerns if it's come from an account that it shouldn't, or any concerns that they had," Mr Walker replied.
The inquiry was told Mr Gu wanted to purchase Canberra Casino and get Mr Walker to operate it, but Mr Walker wanted a more strategic role.
It was also told Mr Walker corresponded with Mr Gu about potential developments in Cairns, lunched with him at Sydney's Rockpool restaurant, and was told to "stay close" to the investment company boss, the inquiry was told.
"There was no conflict of interest, I was acting hand on heart the way I should," Mr Walker said.
The inquiry continues.
