Star Casino Sydney In Australia May Lose LicenseCompany Faces Second Investigation From Regulators |
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Australia’s The Star Casino in Sydney is facing a second probe from regulators that may see the property’s license in jeopardy, according to reports.
The New South Wales Independent Casino Commission (NICC) is investigating the property after a previous report on the property in September 2022 alleged that the casino had “serious governance, risk management, and cultural failures.”
The report also claimed that the property made use of “false documents and misleading, untruthful and unethical communications” to banks as well as “deceptive and unethical” processes and a “failure to account for money laundering and counter-terrorism financing risks.”
Inside The Case
The casino is owned by Star Entertainment Group, which also owns a Star-branded property on Australia’s Gold Coast and the Treasury hotel and casino in Brisbane.
When the first regulatory report was released, the NICC decided against a license revocation because thousands of jobs would be in jeopardy. The company also showed remorse regarding the issues and planned to make changes to casino policies, according to reports.
However, NICC officials now believe the property hasn’t done enough. An external manager has been appointed to oversee the casino as part of the 15-week investigation. That will be followed by public hearings regarding the casino’s operations.
“There is much at stake for the Star, so the NICC is giving the casino every chance it can to demonstrate whether it has the capacity and competence to achieve suitability,” NICC commissioner Philip Crawford said.
Some have criticized giving the company another opportunity after such serious financial breaches.
“They have committed some extraordinary violations of both the letter of the law and public trust,” Charles Livingstone, a gambling regulation expert at Monash University in Australia, told The Guardian. “At what point do [the regulators] say, ‘enough is enough, we’re taking this from you’? And at what point do [the Star] lose their social license? Maybe a second chance, sure, but how many chances do they get?”
Star management released a statement noting that the company welcomed the probe and the opportunity that the property has moved more toward sustainability.
“The Star will dedicate all necessary resources to the inquiry to ensure it meets all its requirements and expectations,” the property noted.
The news of the probe had a serious impact on Star Entertainment stock price earlier this week, with shares falling as much as 26%. The company has been one of the leaders in the country’s poker industry in recent years, with the Gold Coast property even hosting World Poker Tour events.
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