The private gaming rooms at The Star’s casino only shut down following the arrest of junket mogul Alvin Chau, according to an ongoing inquiry that tackles whether the Australian casino is still fit for a gaming license.
Earlier this week, an executive admitted that promoter to ultra-wealthy Chinese gamblers “was still operating at the Star, albeit not under the Suncity banner.”
Speaking at the inquiry yesterday was The Star’s general manager of financial crime and investigations Kevin Houlihan, who, as cited in a report issued by Australian Associated Press, was the person responsible for halting the illegal private gaming room operation.
The then-CEO of Suncity Group, Alvin Chau, was arrested over his alleged connection to an illegal cross-border gambling and money-laundering syndicate in late November.
The Star executive admitted yesterday that he was aware of Suncity handling cash transactions back in August 2019, which was contrary to the agreement with the casino, a red flag for money-laundering.
“Let’s cut to the chase here, this is a big fat red flag for money laundering going on in Salon 95,” counsel assisting, Naomi Sharp SC, had previously noted.
Houlihan denied allegations that The Star’s investigation into the matter was slow, noting the company “took the opportunity to slow down and do a proper due diligence report to get it right.”
Earlier inquiry heard that junket operator Suncity had operated as a third party at The Star via a “Suncity cage” as the operator lacked regulatory approval, which involved a AUD60,000 cash play in the VIP room.
Earlier this year, Local 501, a U.S.-based union, called for a coordinated U.S. federal investigation into the gambling junket operator Suncity Group and its historical relationships with U.S. gaming companies.
In the report, the group recalled that the Australian government flagged an incident in which local casino officials discovered USD5.6 million in cash stored in a Suncity high-roller room – an event that “set money-laundering alarms ringing” at the casino.
