The NSW Independent Liquor & Gaming Authority inquiry is investigating whether The Star Sydney has been infiltrated by criminal activity, and if its casino licence should be stripped following highly critical media reports.
The inquiry has so far heard damning testimony about practices at The Star, prompting the resignation on Monday of the company's CEO Matt Bekier.
At the inquiry, Star NSW regulatory manager David Aloi resumed giving evidence, admitting that he knew the use of debit cards issued by China Union Pay to purchase gambling chips at the casino was in breach of "scheme rules" prohibiting that use.
Around $900 million was transacted on the so-called CUP cards until terminals inside Star Entertainment casinos were disabled in 2020.
The inquiry was told that after internal casino rules were altered it was Mr Aloi's job in 2013 to find a "suitable merchant code category" for EFTPOS terminals at the casino that were not prohibited by CUP, so its debit cards could be used.
Instead of merchant code 7995, which referred to the purchase of gaming chips, code 7011 was used as it referred to "hotels, motels and resorts", it was told.
Counsel assisting the inquiry Naomi Sharp SC put to the witness that the 7011 code was used "even though it was your understanding that at this time that the CUP card would be swiped ... so they could purchase chips".
"Did that strike you as somewhat of an artifice at the time?" Ms Sharp asked.
"Yes," Mr Aloi replied.
Mr Aloi conceded that he was concerned the code did not "truly reflect" what was being purchased on it, but could not remember raising the concern with anyone.
He also admitted to concerns about Macau junket operator Suncity operating as a "third party" inside The Star Sydney via a "Suncity cage" at the casino's Salon 95.
A cage is a dedicated area used by a casino to process cash transactions.
The inquiry has previously been told that Suncity had no authority to operate a cage inside the casino at Salon 95 - a private VIP gaming room - with cash transactions needing to take place at The Star Sydney cage.
Mr Aloi said his concern was that Suncity, as far as he knew, had no anti-money laundering program in place, or approval from the regulator to run a cage.
After receiving a Suncity email, he sought clarification from the casino's anti-money laundering team about "what was going" at Salon 95 by emailing Star Entertainment lawyer Oliver White, the inquiry was told.
Mr Aloi was subsequently told to advise casino management if he became aware of Suncity handling cash in the high-roller room, and later learnt of a $60,000 cash play in the room, but said he could not recall taking any steps afterwards.
A focus at the inquiry is Salon 95, which was part of the casino's so-called "international rebate business" - known as junkets - that involved huge marketing efforts to attract VIP patrons, many from mainland China, to gamble at The Star.
Despite Suncity being prohibited from handling cash in the room, the inquiry has heard Suncity brought bags of money to its service desk, which was used as "an unlawful cage" in the salon over which Star had very little control.
The inquiry continues.
