The New South Wales Independent Casino Commission (NICC) has announced that it has requested that Star Entertainment present its case as to why the regulator should not take action against the casino operator.
The show cause notice was issued following the numerous breaches of licensing conditions established by the second Bell Report. The notice is regarding serious breaches found in the second wave of investigations into the business practices of New South Wales leading casino operator.
The breaches include:
- Failure to run source if wealth checks on high-risk customers
- Fraudulent guest welfare entries leading to vulnerable customers being placed at risk
- 6 of 30 recommendations made in the first Bell Report have not been fully implemented
The NICC has also sent correspondence to The Star regarding its management, operations, culture, the sufficiency and execution of its remediation plan, and its overall suitability to maintain a casino license.
Penalties or disciplinary actions the Star could face include:
- Cancellation of the license.
- A pecuniary penalty of up to AU$100 million.
- Amendment of the terms or conditions of the license.
- A requirement that a casino operator, or a close associate of a casino operator, give an undertaking (an enforceable undertaking) to do or refrain from doing something.
- A letter of censure to the casino operator.
The Star was due to post its financial results last month but instead entered a trading halt. This was after the release of the Bell report which found the Star Entertainment Group found the company unsuitable to hold a casino license.
The Star’s casino license remains suspended while the company now has 14 days to respond to the cause of notice.
The first Bell Report in 2022 saw Star Entertainment Group fined AU$100 million for license breaches that included allowing money laundering to take place at its Sydney casino.
The fine of AU$100 million was the maximum allowed under regulations put in place following the inquiry into the company’s business activities.
Star Employee Charged over Betting Scam
In other news, a dealer at the Star Casino was charged with a scam that involved rigging roulette games so an accomplice could win.
Strike Force Antree, which was formed to investigate corrupt activities at Sydney’s casinos, discovered that the dealer had collaborated with another individual to rig the games between September and October of last year.
The scam involved moving bets after the roulette wheel had stopped and the result was known. This happened multiple times with the dealer’s accomplice pocketing AU$25,000.
Police allege that a 23-year-old man who worked at the casino as a dealer, and another 22-year-old man, would move bets after the roulette result had occurred.
This is the second time in four years that a dealer at the Star Casino has been accused of cheating or helping others to cheat. In 2020, a dealer was alleged to have communicated with a man playing baccarat giving the man an unfair advantage. The scam saw the dealer and his accomplice win over AU$170,000.
It’s not the first time police have uncovered alleged illegal betting activity at The Star. In an unrelated case in 2020, two men, including one employee, were charged over their involvement in a betting scam.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.
Star Entertainment Group, one of Australia’s largest casino operators, is facing the possibility of another hefty fine following a recent investigation into its compliance with anti-money laundering laws. The company, which operates casinos in Sydney, Brisbane, and the Gold Coast, could potentially be hit with a fine of up to $100 million if it is found to have breached regulations.
The investigation, which was launched by the Australian Transaction Reports and Analysis Centre (AUSTRAC), is focusing on whether Star Entertainment Group has adequately implemented measures to prevent money laundering and terrorist financing. This comes after a similar probe in 2017 resulted in the company being fined $5 million for failing to comply with anti-money laundering laws.
If Star Entertainment Group is found to have breached regulations again, the potential $100 million fine would be a significant blow to the company. In addition to the financial penalty, such a finding could also damage the company’s reputation and lead to increased scrutiny from regulators and law enforcement agencies.
In response to the investigation, Star Entertainment Group has stated that it takes its compliance obligations seriously and is cooperating fully with AUSTRAC. The company has also implemented a number of measures to strengthen its anti-money laundering controls, including enhancing its customer due diligence processes and increasing staff training on compliance issues.
Despite these efforts, the potential for another significant fine highlights the importance of robust anti-money laundering measures in the gambling industry. With casinos being attractive targets for money launderers due to the large amounts of cash that flow through their doors, operators like Star Entertainment Group must remain vigilant in detecting and preventing illicit activities.
In conclusion, the potential for Star Entertainment Group to face another $100 million fine underscores the need for strict compliance with anti-money laundering laws in the gambling industry. As regulators continue to crack down on financial crime, companies must ensure that they have effective measures in place to protect against money laundering and terrorist financing. Failure to do so could result in severe financial penalties and reputational damage that could have long-lasting consequences for the business.
