Star Entertainment Group was found unfit to run a casino after an inquiry, led by Adam Bell SC, heard revelations of illegal gang-linked junkets operating in gaming rooms and Chinese debit-card transactions being disguised as hotel expenses.
It was hit with a $100 million fine and had its licence suspended following the October 2022 report.
Mr Bell is leading a second review into The Star's suitability for a casino licence after concerns were raised that reforms might have been prompted by oversight from an interim manager rather than driven by the firm itself.
Adam Bell is heading an inquiry to determine if Star should regain its Sydney casino licence. (HANDOUT/NSW INDEPENDENT CASINO COMMISSION)
Former chief customer and product officer George Hughes described the shift in culture at The Star from one of "profit over compliance" to "fear" after the first Bell review.
"There was a desire and focus from a lot of our team members to ensure that the business became suitable and there was a fear about that not happening," he said on Wednesday.
Counsel assisting the inquiry Caspar Condie asked if that was the case with Star's leadership.
"It was pervasive," Mr Hughes replied.
George Hughes says a culture of fear developed after the casino was stripped of its gaming licence. (HANDOUT/NSW INDEPENDENT CASINO COMMISSION)
Despite the shifting culture, the former executive said an expansion of his role to include riskier responsibilities, a lack of progress on important matters and an unsafe and challenging workplace led to his decision to resign.
He submitted his resignation on February 29 having worked at the company since 2017.
His expanded role included looking after the team that managed relationships with VIP guests, which caused him anxiety and concern over a lack of adherence to approved practices.
"There were historic practices of sending out group text messages with the inclusion of other people's mobile numbers so multiple guests can see other people's mobile numbers," he said.
His request for indemnity relating to his broadened responsibilities was rejected by the board.
Mr Hughes was also concerned about the immense pressure and expectations placed on people, leading him to deem it an unsafe and challenging workplace.
While people were working hard to regain trust and suitability of the business, he admitted the leadership wasn't functioning as optimally as it could have been.
"I don't think (former Star chief executive Robbie Cooke) was leading the team as well as he should have been," Mr Hughes said.
"Debate and discourse on material matters wasn't encouraged."
Earlier on Wednesday, the inquiry was delayed and Star was threatened with fresh charges after the casino's solicitors submitted "quite a large number of documents" two weeks late.
A summons from the inquiry chair required all relevant documents to be submitted by 5pm on April 3.
"The covering letter from the solicitors for The Star entities provided no explanation for the failure to comply with the summons," Mr Bell said.
"I'd be grateful if you could convey to your clients that if they are in breach of a summons, I would appreciate the courtesy of an explanation so I can form a view on whether an offence has been committed."
Star's shares experienced a slight recovery on Wednesday after it was dealt heavy blows over the second inquiry's first two days of public hearings.
20°C