CASINO 'COURTED KNOWN DRUG DEALERS'

Claims of money laundering, prostitution and criminal activity at Star
City casino will be aired publicly in hearings expected to start next
month.

The hearings come at a time when the Herald has learned that Star City
and other casinos targeted gamblers from Cabramatta, knowing full well
that a lot of their money came from the proceeds of drug sales.

Mr Peter McClellan, QC, said yesterday he believed the time was right
to publicly air some of the allegations.

Until now, Mr McClellan has been conducting his investigation behind
closed doors.

Although he declined to be drawn on any details, his decision is a
serious setback to Star City casino, which has consistently denied any
wrongdoing or failure of management.

Allegations of money laundering and loan sharking, including gamblers
going into hiding in fear of their lives from loan sharks operating in
the casino's high-roller room have dogged Star City for months.

In addition, a former senior executive, Mr Mark Wells, and a former
high roller, Mr Alexander Preston, who is suing the casino, have made
allegations against casino management.

In a confidential interview with investigators assisting Mr McClellan,
Mr Wells has detailed how casinos sought out gamblers from Cabramatta
as early as 1992 knowing full well that a lot of their money probably
came from drugs.

The Herald has also learnt that detectives from Crime Agencies are
also investigating some of the matters and have been in touch with Mr
McClellan.

It is believed the police are particularly keen to talk to gamblers,
including a doctor, who went into hiding owing a large amount of money
to loan sharks.

While loan sharking is not illegal, critics of Star City have asked
how they were allowed to operate so openly when their presence clearly
created a potentially unsafe environment for punters.

When Mr McClellan announced his inquiry on June 17 he said he proposed
to hold hearings in private.

He said this would "enable the veracity of information to be examined
to ensure that no person is improperly or inadvertently subjected to
adverse publicity which may impinge upon their reputation".

However, he did add: "If I form the view that public hearings will
assist the investigation I will determine whether, notwithstanding the
potential damage to individuals, it is nevertheless appropriate to
conduct them."

Mr McClellan has clearly decided that that time has come.