According to reports, The Star Casino is one of Leonardo DiCaprio's favorite places to hang out when he stays in Sydney.

Leonardo DiCaprio is in Sydney to continue the shoot of The Great Gatsby. However, according to a close friend of The Star Casino owner, Larry Mullin, the actor goes to casino and was treated like a high roller by the former managing director Sid Vaikunta.

According to the source, Leo was given permission to use the casino's private jet "whenever he wants", dine at any of the world-class restaurants and use the extra rooms to stage private parties.

Also reported, The Star Casino's Sid Vaikunta was replaced due to bad behavior in the social work setting. Frederic Luvisutto has been appointed in Mr Vaikunta's place. Mr Luvisutto has been managing director of Jupiters Gold Coast since May 2011 and there are no further details about the departure of Vaikunta from the company.

The Casino, Liquor and Gaming Control Authority is investigating Mr Vaikunta's behaviour, a spokesman for NSW Gaming Minister George Souris told AAP.

The authority later said it had demanded from The Star a full explanation of the circumstances surrounding Mr Vaikunta's departure.

"The authority will be responsible for assessing the suitability of the new managing director to be licensed as a special employee under the Casino Control Act," it said in a statement.

Despite the controversy, Leonardo DiCaprio still pays The Star a visit.

DiCaprio appeared at both of the two multi-million-dollar relaunch parties The Star staged last year - sneaking into a VIP room at restaurant Black By Ezard in September and then introducing a performance by Stevie Wonder in October.