Star Entertainment gave a high roller banned from its Sydney casino by police a $50,000 Rolex watch and free accommodation at its Gold Coast venue to entice them to gamble there, an inquiry has heard.
The gambling giant's marketing boss Chris Peasley admits Star allowed the player to circumvent a NSW police ban, at an inquiry into its suitability to hold a casino licence in Queensland.
The high roller was banned by NSW police from The Star, Sydney in 2007 due to their alleged involvement in criminal activities, but was encouraged to continue gambling at The Star Gold Coast.
Senior Star managers knew the ban was a potential "red flag", but decided the person deserved the same treatment as its other loyalty program customers, including gifts like the watch and free accommodation.
"The conclusion was, they can go to the property, they can participate in the loyalty program, they can receive those benefits of the loyalty program," Mr Peasley told the inquiry on Wednesday.
"They are to be treated the same as any other customers of the player level. That's probably the best way of explaining."
Counsel assisting Jonathan Horton, QC, asked if concerns had been raised, or even hinted at, about whether that decision met Star's legal anti-money laundering (AML) responsibilities.
"We frequently spoke with the AML team around person one in particular, and sought their guidance with them being the subject matter experts," Mr Peasley admitted.
"We would make contact after, say, media coverage, and also as the person's play increased.
"We would go to them to seek the guidance ... There was certainly regular contact."
Mr Horton asked if there was potential the ongoing association with the banned person could create a risk of the casino become involved in their criminal activity.
"That sits across a lot of customers, and hence, that's why you have AML risk teams and we communicate with them," he said.
Mr Horton asked if Mr Peasley was personally worried by the dealings.
"It caused concern," he admitted.
"Again, that's why I reached out to the specialists in that area.
"I don't think I was worried, but it certainly raised a concern, or some might say a red flag, yes.
"Rightly or wrongly, it was allowed to continue."
Earlier, Star's responsible gambling manager Junior Toleafoa revealed 7000 people have been banned from the company's two Queensland casinos.
However, he admitted staff were expected to enforce those bans without the aid of facial recognition technology installed at its Sydney casino.
Counsel assisting Angela Hellewell asked if facial recognition technology in Sydney casinos had helped staff identify between eight to 10 times more banned patrons than staff in Queensland.
"It's a great improvement, yes," Mr Toleafoa said.
"I believe that technology is soon to be implemented ... I believe it is on the brink of being implemented in the Gold Coast.
"It is technology I know that we want."
The review before Judge Robert Gotterson will report to the attorney-general by September 30.
