A former relationship manager at the National Australia Bank (NAB) has shared he had no understanding that terminals provided by the bank at the Sydney casino of Star Entertainment were being used for gambling chip purchases in violation of local legislation.
As previously reported by Casino Guardian, the Australian gambling giant is currently under the spotlight of a Royal Commission-style probe that is investigating the casino company’s operations following some media report claims that Star Entertainment had allegedly allowed fraud, foreign interference, money laundering and penetration of organised crime at its venues, including The Star Sydney. So far, the investigation has triggered some management reshuffles at the company, including the CEO and managing director Matt Bekier, the CCO, Greg Hawkins, the CFO Harry Theodore, and the chief legal and risk officer Paula Martin.
The executive chairman of the casino giant – John O’Neill – is set to give evidence by the end of the week, only a few days after announcing his intentions to step down from his position on the Board of Directors.
Earlier today, the investigation saw the former director of institutional banking at National Australia Bank – Andrew Bowen – give evidence of his awareness that the terminals situated at The Star Sydney were used for gambling chip purchases through China Union Pay (CUP) Cards, in breach of gambling payment rules.
Gambling Chip Purchases Through CUP Cards Masked as Hotel Accommodation Fees
On May 23rd, the inquiry heard that the gambling transactions via the so-called CUP cards were actually masked as hotel accommodation fees. However, the money was actually used for gambling chip purchases in breach of China Union’s rules. According to evidence, approximately AU$900 million flowed into the casino through the CUP Cards, which eventually raised internal concerns about potential money laundering.
The management of The Star Sydney has noted that the casino stopped accepting CUP Cards in 2020.
The former NAB official has now shared that, at the time, he was not aware of the fact that the terminals installed by the bank at Star Sydney’s hotel, had been used for gambling-related payments. Mr Bowen, who operated as the NAB’s relationship manager for The Star Entertainment from 2012 to 2019, explained that his understanding was that the terminals in question were to be used “for hotel and other expenses”.
During the inquiry, he was also asked whether in 2016 or 2017 he had any understanding that CUP Cards were actually used for purchasing gaming chips rather than for making hotel expenses payments. The former NAB relationship officer explained he had no knowledge of that and noted that VIP patrons of The Star Entertainment could have easily spent between AU$20,000 and AU$200,000 on other attractions offered by the resort.
A Wave of Management Reshuffle Starts at The Star Entertainment Following Evidence of Mismanagement
As part of the inquiry hearings held on Monday, Star Entertainment’s director Richard Sheppard was asked about Mr Bekier’s reaction to the probe when asked to comment on the casino company’s relationship with Suncity Group, a notorious junket operator based in Macau.
As found by the investigation, back in 2019, Mr Bekier was told by casino staff that the police commissioner of New South Wales (NSW) had informed the venue that 6 people linked to Suncity had been excluded from the casino. Furthermore, the inquiry heard evidence that the Macau junket operator was given access to a special VIP gaming room at The Star Sydney, called Salon 95, where an illegal cage was run.
Mr Sheppard was asked to say whether he still trusted the judgement of Andrew Power, the Star group general counsel, after the investigation found he had failed to ensure the necessary transparency with local regulatory bodies. The answer was no.
As Casino Guardian already reported, many directors of The Star Entertainment are expected to step down from their positions after the ongoing inquiry has heard some testimony of clear mismanagement of the company. Gerard Bradley and Sally Pitkin were among the first Board Directors who shared intentions to resign.
- Author
Olivia Cole
