Star Entertainment Group is facing a critical moment as it awaits the outcome of its casino license in New South Wales (NSW). The company, based in Brisbane, has been under scrutiny after a second investigation by SC Adam Bell revealed that it had not made sufficient progress in addressing serious issues uncovered in the initial inquiry in 2022.
The NSW Independent Casino Commission (NICC) has issued a disciplinary notice to Star Entertainment, citing four major breaches outlined in a report from August 30. If the company is able to retain its license to operate a Sydney casino, it will be required to pay a hefty fine of AU$100m (US$67m). These breaches include failing to conduct welfare checks on high-risk customers, falsifying these checks, and a case of cash fraud. Star has been given a two-week deadline to respond to these allegations. Additionally, the regulator is seeking more information on the operator’s financial status and its plans for remediation if it retains the license.
Star Entertainment has indicated that it may challenge certain issues and intends to provide a response by September 27. The company also faces concerns in Queensland, where it operates two casinos. The Queensland regulator is monitoring the situation in NSW before proceeding with its own investigation into Star Entertainment.
Investor funds are currently tied up as Star Entertainment’s shares are not available for trading on the Australian Securities Exchange (ASX) due to the company’s failure to submit its annual report for the most recent fiscal year by the deadline.
Australia’s casino industry has been under intense scrutiny in recent years, with authorities uncovering significant anti-money laundering failures, player protection issues, and other compliance shortcomings at Star Entertainment. Despite retaining its license following the initial probe in October 2022, the company was required to appoint a special manager, Nicholas Weeks, to oversee remediation efforts. However, ongoing issues, such as an ATM malfunction that resulted in patrons receiving AU$3.2m (US$2.1m) in free cash, have raised further concerns.
Similar issues have been faced by Crown Resorts, the other major casino company in Australia, which has also been subjected to hefty fines for its regulatory violations. The casino industry in Australia is facing a period of heightened scrutiny and accountability, with regulators taking firm action to address compliance failures and protect consumers. Star Entertainment Group, along with other operators, must demonstrate a commitment to addressing these issues and upholding the highest standards of integrity and responsibility in their operations.