The first day of hearings examining The Star Entertainment Group’s right to hold a casino licence has concluded.
The NSW Independent Liquor & Gaming Authority announced the review in late 2021 to probe fraud, criminal infiltration and money laundering allegations at the Pyrmont casino.
As reported by The Sydney Morning Herald, the first hearing detailed how the operator disguised AU$900m (US$661m) of gambling transactions on Chinese debit cards as hotel expenses.
Star Entertainment’s misrepresentation of funds means it has lied to banks and thus committed fraud, so says the newspaper.
Day one of the inquiry, launched by the NSW Independent Liquor & Gaming Authority, detailed the involvement of CFO Harry Theodore and General Counsel Oliver White. The inquiry heard that both were alleged to mislead NAB and China UnionPay over transactions in 2019.
Payments were accepted from UnionPay bank cards at a number of The Star’s partner hotels and transferred to its casinos in Brisbane and Sydney.
Naomi Sharp, the counsel assisting the inquiry, noted that the AU$900m processed through this method left the company open to money laundering, allowed the operator’s patrons to avoid China’s capital controls and broke an agreement with the merchant bank NAB.
China UnionPay does not permit gambling transactions on its cards and, aside from Macau, gambling is illegal in China. By transferring invoices from partnered hotels to casinos, The Star put hotel guests at risk of unwittingly infringing upon bank regulations.
The Star’s assisting group treasurer, Paulinka Dudek, was at the hearing. Having only joined the operator in 2019, Dudek claimed she had no involvement in The Star’s fraudulent activities.
She said: “I wasn’t responsible for the [UnionPay] transactions occurring at The Star and I knew senior management were involved in that correspondence.
“I didn’t feel I could challenge a process that had been in place for a very long time at The Star.”
Other issues are expected to be raised as the public inquiry continues, such as The Star’s dealings with junket operator Suncity.
The wider integrity of Australia’s casino industry is also under increased scrutiny, with Crown Resorts culpible for a raft of failings in recent years.
Belle Corp year-on-year revenue doubles to $25m in 2021
Belle Corporation’s income from casino revenue in the year ended 31 December 2021 has more than doubled year-on-year.
The company’s filing to the Philippine Stock Exchange details a 105% increase in revenue, with PHP1.3bn (US$25M) made in 2021 compared to PHP635m in 2020.
“I wasn’t responsible for the [UnionPay] transactions occurring at The Star and I knew senior management were involved in that correspondence" Paulinka Dudek, Assisting Group Treasurer
Belle Corp has shares in City of Dreams Manilla (CoD) through an operating agreement between its subsidiary Premium Leisure Corp and Melco International. Its revenue is calculated proportionately to its share of the casino.
Its percentage of gaming revenue went up 23% year-on-year, although full-year group-wide revenue for Belle fell to PHP 3.4bn, down 18% from 2020.
A spokesperson for Belle has said its revenue gain was down to improved operations throughout 2021. It notes, however, that operations were still broadly limited because of persistent Covid-19 restrictions.
Belle Corp will be hoping for even more significant gains come the year-end of 2022. This is looking increasingly likely, with the majority owner of City Dreams Manilla, Melco Resorts, announcing the casino is now operating at 100% capacity.
NagaWorld protestors threatened by financial incentives withdrawal
The Royal Government of Cambodia has threatened to withdraw financial incentives offered to NagaWorld employees in a bid to cease their strikes.
Staff numbers were reduced following Covid-19 restrictions and many have struggled to return to their jobs, owing to limited resort operations.
Despite incentives being offered by the Royal Government of Cambodia, strikers have refused to end the industrial action.
Now, the Cambodian Government is threatening to withdraw these incentives should the strike continue.
As quoted in The Khmer Times, a spokesperson for the government has said:
“While the Ministry supports the legitimate right to strike, the Ministry and relevant authorities do not permit the disgruntled employees to assemble in great numbers at this time due to the need to prevent the spread of Covid-19 and to keep all Cambodians safe.
“Those who have insisted on gathering to air their grievances at NagaWorld are considered to transgress the Ministry’s strict policies and Covid-19 safety regulations, will be removed peacefully and are at risk of losing their benefits.”
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