The second investigation into Star Entertainment’s eligibility to maintain a casino license in Sydney has revealed that the company’s efforts to rectify issues have been inadequate since the initial inquiry. This information led to the suspension of trading of its shares after the announcement on Friday. The inquiry conducted in New South Wales (NSW) discovered that Star has not met the necessary standards in addressing concerns related to serious matters such as money laundering and connections to organized crime. The initial investigation in August 2022 deemed the Brisbane-based company unsuitable and appointed a special manager to supervise operations.
Adam Bell, who oversaw both inquiries, highlighted in the recent report that there have been four significant compliance breaches since the first investigation. One notable incident involved patrons receiving AU$3.2 million (US$2.2 million) in free cash due to a software malfunction on ATMs that lasted for six weeks. Additionally, it was uncovered that the three-hour mandatory break rule for gamblers was not being enforced, and staff members were falsifying records regarding these interactions. Star Entertainment had initially planned to release its financial results for the 2024 fiscal year on Friday but postponed the announcement following the report’s release.
The NSW Independent Casino Commission is currently deliberating on its next steps as it analyzes the findings outlined in the report. Chief Commissioner Philip Crawford expressed the belief that the report’s conclusions emphasize the necessity of a second inquiry and that the casino company has been slow to address longstanding issues. In an effort to address regulatory concerns, Star Entertainment has made changes to its senior management in recent years, with Steve McCann assuming the role of CEO in June.
The Queensland government is also assessing Star’s suitability to operate its casinos in Brisbane and the Gold Coast. Officials were awaiting the outcome of the NSW investigation before proceeding with their own evaluations.
In conclusion, the latest inquiry into Star Entertainment’s eligibility to hold a casino license in Sydney has revealed ongoing deficiencies in the company’s efforts to address serious issues such as money laundering and ties to organized crime. The findings have prompted regulatory action, including the suspension of trading of Star’s shares and ongoing assessments by regulatory bodies in both NSW and Queensland. It remains to be seen how Star Entertainment will respond to these challenges and whether further measures will be taken to ensure compliance with regulatory standards.