The Star Entertainment Group has been deemed unfit to possess a gambling permit in New South Wales and has been given two weeks to address the findings before corrective measures are taken.
The investigative report by legal counsel Adam Bell disclosed that The Star Sydney casino had persistent and pervasive shortcomings in anti-money laundering and social accountability across various domains and business operations.
The report indicated that these systemic deficiencies were “a consequence of inadequate risk management and oversight. It also reflects a culture that faltered during the events under scrutiny, tolerated unethical behavior, prioritized commercial goals over adherence, accepted risk, and impeded the dissemination of unfavorable information.”
The renowned Sydney gambling establishment, the Star casino, has been accused of severe impropriety, including efforts to circumvent Chinese capital flight regulations, providing false information to financial institutions, and enabling potential lawbreakers to operate within its confines. The casino is alleged to have concealed gambling expenditures as hotel expenses on China UnionPay cards, and a hidden room, known as “Salon 95,” was allegedly utilized to dodge anti-money laundering procedures. The report also claims that the casino provided false information to and withheld documents from the state regulatory body, the Independent Liquor and Gaming Authority (ILGA).
The newly formed NSW Independent Casino Commission (NICC) is now tasked with overseeing casinos and will decide on the disciplinary measures to be taken against the Star casino. The NICC, which replaced the ILGA, is presently examining the report’s 30 suggestions.
Philip Crawford, the head of the NICC and former head of the ILGA, expressed astonishment and worry about the findings. He stated that the report provides proof of widespread compliance issues within the Star casino’s operations. He emphasized the casino’s attempts to conceal large sums of money as hotel expenses and the alarming use of “Salon 95″ to avoid anti-money laundering procedures. Crawford stressed that the NICC is meticulously evaluating the report’s content and will address each of the suggestions.
After Star Entertainment has the opportunity to reply to the notification, we will be able to decide on the appropriate disciplinary measures,” stated Crawford.
Crawford also provided more details about recent changes that have given authorities the power to act on the Bell Report.
“Recent changes made by the New South Wales government have strengthened the regulatory framework to take action based on the Bell Report. Our options include taking away licenses, halting operations, imposing penalties, and/or appointing managers,” he stated.
**Order to Provide an Explanation**
In addition to the report, the NICC has issued an “Order to Provide an Explanation” notice to Star Entertainment, which is a directive outlining the specifics of the alleged violations and requiring the recipient to provide an explanation. Star Entertainment has two weeks to respond to the accusations before disciplinary action is taken.
Although the casino is likely to face some form of enforcement action — which, under the Casino Control Act of 1992, could include reprimanding the operator, imposing a penalty of up to A$100 million (£59 million/$69.1 million/€69 million), and suspending or canceling the operator’s casino license — the nature of this action is still uncertain.
The notification states that, according to the report, “Star Entertainment is currently not considered suitable to be involved in or associated with the management and operation of a casino in New South Wales.”
In the days leading up to the report’s release, Star Entertainment suspended trading on the ASX in response to media reports that the casino’s license was in jeopardy.
Subscribe to the online gaming newsletter.
