## Stellar Accommodation Examination: Suncity Gaming Area ‘Openly Ignored’ Regulatory Guidelines – New South Wales
An examination by Bell Lawyers scrutinizing widespread impropriety at Star Sydney’s gambling establishment discovered that the enterprise’s dealings with the problematic junket operator Suncity constituted a “violation” of the Star’s casino permit, uncovering a series of social responsibility shortcomings.
The investigation centers on activities in a space within the casino known as “Salon 95”. In this area, the junket operator was granted the unusual privilege of managing a secondary cash cage where chips could be exchanged for currency, a task typically reserved for the casino license holder.
Suncity’s founder and chief executive, Alvin Chau, was apprehended in November 2021 and accused of leading a “gang organization”. This indicates that Star Entertainment (licensed by pertinent NSW authorities) may have relinquished control of the most sensitive facets of casino operations to a group potentially connected to organized crime, raising substantial concerns about the casino’s anti-money laundering and counter-terrorism financing tactics and the extent of criminal penetration.
Salon 95 was equipped with a security camera, but it had a conspicuous blind spot.
In the summer of 2018, security cameras captured a Wynn employee handing over a significant amount of money to a person representing a high-roller room who was not associated with the Wynn.
The report indicated that concerning this event, “Wynn personnel at VIP room 95 appeared increasingly audacious in their disregard for the regulations that the Star City was attempting to enforce.”
This was not a singular occurrence, and the report mentioned numerous instances where security footage showed Wynn personnel at VIP room 95 participating in dubious actions.
During the investigation, Star City’s Manager of Regulatory Affairs, Graham Stevens, acknowledged that he had “intentionally deceived” New South Wales regulators when submitting applications to the casino regarding modifications to VIP room 95, concealing the nature of the service desk.
In a section about the connection between Star City and Wynn, the report concluded that it had discovered Star City had violated its internal control handbook, thereby breaking the Casino Control Act of 1992, a severe violation of the operator’s license.
Simultaneously, Wynn has discontinued its entire high-roller room business, which was fundamental to the company, and is trying to rebrand and change its business emphasis to integrated resorts.
Absence of Social Responsibility
The report, in addition to claims of financial and regulatory breaches, and connections to organized crime, details a substantial lack of social accountability in the casino’s actions. In January, legal representatives assisting the report identified three significant shortcomings in Star’s operations: patrons gambling for prolonged periods without casino staff intervention; providing alcohol, including as a motivator for gambling; and ensuring the implementation of social exclusion measures.
Philip Crawford, head of the NSW Independent Casino Commission (NICC) and the ILGA, emphasized the casino’s widespread, systemic shortcomings in a statement accompanying the report’s release.
“Beyond the examination of the genuine risk of criminal infiltration and the concealment by senior personnel,” Crawford stated, “the document outlines instances of individual patrons experiencing gambling-related harm.
“Star provided complimentary alcohol to high-value customers as an inducement to gamble, and permitted vulnerable patrons to gamble for over 24 consecutive hours, without intervention. These specific cases are alarming, demonstrating how unrestrained gambling can transition from amusement to exploitation.”
The New South Wales Independent Gaming and Liquor Authority (NICC) will determine what disciplinary actions to take against the operator. The NICC has granted the operator a two-week period to respond to the report.
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