Star Entertainment keeps Sydney Casino open but is fined again

Posted on: October 17, 2024, 2:03 am.

Last updated on: October 17, 2024, 2:04 am.

Star Entertainment has been fined again by the New South Wales Independent Casino Commission but is allowed to continue operating its Sydney resort.

Australia’s second-largest casino operator Star has agreed to pay a fine of 15 million Australian dollars (US$10 million) after the NSW Independent Casino Commission (NICC) found the company continued to fail to comply with legal regulations violates regulations. However, Star is still permitted to operate slot machines, or pokies as they are known Down Under, and live dealer table games at The Star Sydney.

In 2022, a NSW inquiry concluded that Star Entertainment was unsuitable to hold a gambling license in the state. The investigation found widespread evidence that The Star Sydney did little to combat money laundering at its casino and keep criminal syndicates off the premises.

Two years later, a follow-up audit by the NICC concluded that further work was required to gain eligibility and regain full control of the company’s gambling license.

Star remains non-compliant

Announcing the A$15 million fine, NICC chief commissioner Philip Crawford said the second investigation had found persistent breaches of regulations and that operations at The Star Sydney were “well below suitability”.

Crawford said NICC-appointed manager Nick Weeks would continue to oversee The Star Sydney until at least March 2025, when a further review of the casino’s operations would be carried out. Crawford stated that The Star continues to have numerous deficiencies in its governance, regulatory compliance, technology operations and risk management.

“In a casino environment, compliance violations can have serious consequences for the community, and the Bell Report demonstrated how quickly weak controls can lead to criminal infiltration and gambling harm,” Crawford said. “The NICC recognizes the many challenges facing The Star and will continue to closely monitor The Star’s progress to demonstrate its ability to regain its casino license.”

Along with the fine, the NICC ordered additional financial and operational reporting requirements until March 2025.

Crawford added that The Star CEO Steve McCann, the former CEO of Star rival Crown Resorts who was appointed to the position in June, has maintained open communication with the casino regulator. Crawford said the NICC has had “a much healthier relationship” with star governance since McCann’s appointment.

Star Bleeding Money

Star Entertainment remains a key takeover target as the casino company, which operates The Star Sydney, The Star Brisbane and The Star Gold Coast, continues to operate at significant losses.

Hard Rock International recently denied its interest in purchasing The Star Entertainment Australian Financial Report reported rumors that the company controlled by the Seminole Tribe of Florida was considering a takeover.

US-based private equity giant Blackstone, which already owns Crown, is also reportedly considering a bid for Star. Blackstone also owns the Bellagio, The Cosmopolitan, Aria and Vdara on the Las Vegas Strip.