Star Entertainment Unsuitable for Sydney Casino License
The Star Entertainment Group has once again been deemed unsuitable to hold a casino license in Sydney following the release of a second investigative report led by Adam Bell SC. The report, made public today, has revealed that the company continues to fall short of the standards required for a responsible casino operator.
The Star Entertainment logo on a door of its casino in Sydney. (Source: AAP)
LISTEN TO THIS ARTICLE:This marks another significant setback for The Star, which is now inaugurating a new, multi-billion casino project at Queen's Wharf. The casino operator's license was already suspended following a damning inquiry in 2022 that uncovered serious anti-money laundering and counter-terrorism failings.
The new findings indicate that The Star has not adequately addressed the critical issues raised in the previous investigation, with the period since 2022 described as being "marked by lost opportunities and missteps." The report highlights four major compliance breaches that have occurred during this time, raising further concerns about the company's ability to operate within the legal and ethical frameworks expected of a casino license holder in New South Wales.
One of the most significant breaches detailed in the report involves a $3.2 million fraud linked to a software glitch in the "ticket in, cash out" machines. This error allowed Star clients to claim funds they had not legitimately won over a period of six weeks, undermining the integrity of the casino's financial operations. The glitch and subsequent fraud raise serious questions about the effectiveness of The Star's internal controls and monitoring systems.
Additionally, the report reveals disturbing breaches of regulations designed to protect vulnerable patrons. Specifically, there were multiple instances where the three-hour gaming limit, intended to ensure patrons take breaks, was not enforced.
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Star’s Future Remains Uncertain
Investigations showed that Star staff had falsified records to suggest they had intervened in extended gambling sessions when, in fact, no such interactions had taken place. These systemic failures indicate a disregard for the welfare of patrons and a significant lapse in responsible gaming practices.
The NSW Independent Casino Commission is currently reviewing the findings of the report to determine the future of The Star's suspended license. The Commission has expressed serious concern over the continued regulatory failures and is considering its next steps carefully. The ongoing suitability of The Star to operate the Sydney casino will depend heavily on the Commission's assessment of the company's response to these latest findings.
In response to the release of the report, shares in The Star were placed in a trading halt on the Australian Stock Exchange. The company cited the need to review the report and finalize other details related to its 2024 financial year results, which were originally scheduled to be announced today but have since been postponed. The trading halt adds to the uncertainty surrounding The Star's future, as investors await further developments from both the company and the regulatory authorities.
The release of this second report intensifies the scrutiny on The Star and casts further doubt on its ability to meet the stringent regulatory requirements expected of a casino operator in New South Wales.
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