UK
The New South Wales Independent Casino Commission has penalized Star Entertainment once more, yet it is still permitted to operate its resort in Sydney.
After the NSW Independent Casino Commission (NICC) found that Star, Australia's second-largest casino operator, is still not in compliance with regulations, the firm agreed to pay a penalty of AU$15 million (US$10 million). Nonetheless, Star is allowed to keep running live dealer table games and slot machines, or pokies as they are known in Australia, at The Star Sydney.
An investigation conducted in NSW in 2022 found that Star Entertainment was not qualified to hold a gaming license in the state. The investigation discovered ample proof that The Star Sydney did little to prevent criminal syndicates from using the facility and fight money laundering at its casino.
Following the 2022 investigation, Star was permitted to keep running the Sydney casino, but with a management nominated by the government. In addition to being fined AU$100 million, Star was mandated to implement numerous corrective actions to bring the casino into line with regulations.
TWO YEARS LATER, A FOLLOW-UP REVIEW FROM THE NICC DECIDED THAT MORE WORK IS REQUIRED TO RECOVER SUITABILITY AND FULL CONTROL OF THE COMPANY'S GAMING PERMIT.
Star Continues to Disobey
NICC Chief Commissioner Philip Crawford announced the AU$15 million fine, stating that operations at The Star Sydney were still "far short of suitability" and that the second probe had found ongoing compliance violations.
Crawford stated that Nick Weeks, the manager chosen by the NICC, will remain in charge of The Star Sydney until at least March 2025, when a new assessment of the casino's operations is carried out. Crawford explained that The Star still has a lot of issues with risk management, technological operations, governance, and regulatory compliance.
"In a casino setting, compliance breaches can have serious consequences for the community, and the Bell Report illustrated how quickly weak controls can lead to criminal infiltration and gambling harm,” Crawford said. “The NICC understands the many challenges The Star is facing and will continue to closely monitor The Star’s progress in proving it is capable of regaining its casino license.”
The NICC imposed extra operational and financial reporting obligations from now until March 2025 in addition to the punishment.
Crawford also mentioned that the casino regulator has remained in contact with Steve McCann, the CEO of The Star, who was hired in June after formerly serving as the CEO of Star rival Crown Resorts. Crawford claimed that since McCann's appointment, the NICC and Star governance have had "a much healthier relationship."
Star Bleeding Cash
Since the casino chain that owns and operates The Star Sydney, The Star Brisbane, and The Star Gold Coast is still losing a lot of money, Star Entertainment is still a top target for a takeover.
The Star reported a multibillion-dollar annual deficit for the second consecutive year last month. On Thursday, the company's shares that were listed on the Australian Securities Exchange ended the day at a mere AU$0.29.
After the Australian Financial Review revealed that Star Entertainment, which is owned by the Seminole Tribe of Florida, was considering an acquisition, Hard Rock International recently rejected any interest in purchasing the company.
Blackstone, a massive US private equity firm that now owns Crown, is reportedly thinking about making an offer for Star. On the Las Vegas Strip, Blackstone also owns the Bellagio, The Cosmopolitan, Aria, and Vdara.
