Star Entertainment's top risk and legal manager has admitted the gaming giant should have told the NSW gaming regulator about concerning transactions in a VIP casino room exclusively used by a notorious overseas junket operator.
Paula Martin, Star's chief legal and risk officer, resumed in the witness stand on Wednesday at a royal commission-style inquiry into the fitness of the Sydney gaming venue to hold a casino licence.
Ms Martin was quizzed by counsel assisting Naomi Sharp SC over what occurred in casino VIP room Salon 95 - which was used by Suncity, a Macau-based junket operator backed by Alvin Chau - whom the inquiry has heard had alleged Triad links.
The inquiry was told that Ms Martin was made aware of a number of concerning activities by Suncity - at one point the largest junket operator that The Star dealt with - in Salon 95 in 2018 and 2019, including a "pseudo casino cage" in the room.
The "myriad of transgressions" in the room also involved cash being exchanged for gaming chips, storing cash in sports bags on a balcony, and access to the room being granted to non-junket participants, the inquiry was told.
"Was it appropriate that the NSW regulator should have been alerted to these concerning transactions?" Ms Sharp asked.
"Yes Ms Sharp, I think it would have been beneficial," Ms Martin replied.
The casino lawyer was also quizzed over about her knowledge of a Hong Kong Jockey Club report critical of Suncity, and whether she was made aware of claims the group was linked to Asian crime gangs.
Adam Bell SC, who is helming the inquiry, asked Ms Martin whether she understood there were concerns "Mr Chau was linked to the Triads".
"Those matters of concern to be taken into account related to his links to Triads, correct?" Mr Bell asked.
"Yes ... Triads in some cases," she replied.
Also at issue was Star's use between 2013 and 2020 of China Union Pay debit cards at The Star Sydney, in a process where gambling chip purchases were presented as hotel charges.
Around $900 million flowed into the casino until the CUP process was stopped, the inquiry was told, with Ms Martin approving at one point an $11 million lift in high roller Phillip Dong Fang Lee's cheque cashing facility limit linked to his CUP card.
Ms Martin rejected claims it was "not far fetched" that organised crime figures took advantage of the CUP process, calling it "not a characterisation I would use".
She also denied that the Sydney casino had, via the CUP card process, "left its doors wide open to organised crime".
"I don't agree with that," the witness replied.
She also disagreed with Ms Sharp's suggestion that Star "completely flouted" Chinese capital flight restrictions via the company's use of the CUP cards.
"No I don't agree with that," she said,
"None of your answers to my questions this morning have been frank and candid have they?" Ms Sharp then put to the witness.
"I believe I'm doing my best to do that Ms Sharp," Ms Martin replied.
Ms Sharp submitted that at no point did Ms Martin "call out" the CUP arrangement as improper or unethical in dealings with lawyers, management or the Star board.
Ms Martin replied: "I would sit here today and say over that time it does not accord with our value of doing the right thing".
The inquiry continues.
