Concerning findings
The second probe into Star Entertainment’s suitability to hold a casino license in Sydney has concluded that the company remains unfit to regain full control. It halted trading of its shares after the news broke on Friday.
money laundering and links to organized crime
The inquiry in New South Wales (NSW) found that Star is “falling short” on its remedial efforts following the numerous scandals relating to serious issues like money laundering and links to organized crime. The first inquiry determined the Brisbane-based company to be unfit in August 2022 and appointed a special manager to oversee operations.
More issues
Adam Bell, who has led both inquiries, concluded in Friday’s report that there have been four major compliance breaches since the initial probe, including one that led to patrons getting AU$3.2m (US$2.2m) in free cash due to a software glitch on ATMs that lasted for six weeks.
Another finding was the lack of enforcement of the three-hour mandatory break rule for gamblers and then staff falsifying records about these interactions. Star Entertainment was planning to deliver its 2024 fiscal year financial results on Friday before postponing following the report’s publication.
The next steps
The NSW Independent Casino Commission is now deciding on its next move as it breaks down the findings in the report. The regulator’s Chief Commissioner Philip Crawford believes the report’s findings underline the need for a second inquiry and that the casino company hasn’t moved quickly enough to resolve long-running problems.
The Queensland government is also looking at Star’s suitability to run its Brisbane and Gold Coast casinos and was waiting to see the outcome of the NSW probe before proceeding any further with its own assessments.