Star Entertainment Declared Ineligible for Gambling Permit in New South Wales
The Star Entertainment Group has been declared ineligible to possess a gambling permit in New South Wales. They have been allotted a fortnight to provide a response to the conclusions before facing disciplinary measures.
The document, authored by legal professional Adam Bell, detailed a comprehensive catalog of shortcomings by The Star Sydney casino in hindering money laundering and fostering accountable gaming. These shortcomings extended over numerous years and impacted various facets of the casino’s operations.
The document concluded that these pervasive failures stemmed from inadequate risk management and administration. It further asserted that the casino’s atmosphere was dysfunctional and condoned unethical conduct. The document alleged that the casino prioritized financial gains over adherence to regulations, encouraged hazardous behavior, and discouraged staff from reporting issues.
The operator’s wrongdoings encompass: successfully evading Chinese capital flight regulations by deceptively relabeling gambling expenditures as lodging costs on China UnionPay (CUP) cards; misrepresenting these payments to financial institutions; permitting entities potentially associated with organized crime to manage cage operations at the operator’s Star Casino; and providing false information to and withholding documents from the state regulator, the Independent Liquor and Gaming Authority (ILGA).
The newly formed Independent Casino Commission (NICC) is tasked with deciding the nature and form of disciplinary measures taken against casinos. The NICC is a newly established legal entity that has assumed the ILGA’s oversight of the casino industry.
In a statement accompanying the report, NICC Chief Commissioner and ILGA Chair Philip Crawford expressed a strong reaction: “To be honest, this report is alarming. It presents evidence of widespread compliance problems in crucial aspects of the Star Casino’s operations.
“Not only did the casino conceal substantial sums of money as lodging costs, but in numerous instances, large amounts of cash evaded anti-money laundering procedures, most concerningly through the Salon 95 – a hidden room with a second cash cage.
“We are evaluating the contents of the report. The 30 recommendations involve a variety of effects that need to be addressed in a phased manner.”
Upon receipt of a reply from Star Entertainment to the notification, we will be able to decide on the suitable disciplinary measures.”
Crawford also emphasized recent changes that have given regulators the authority to act on the Bell Report.
“The New South Wales government’s recent reforms have bolstered the regulatory framework, enabling us to take action based on the Bell Report. Our options include license withdrawal, halting of operations, penalties, and/or the appointment of administrators.”
**Notice to Explain**
Along with the report, the NICC also issued a “show cause” notice to Star Entertainment, a directive outlining the alleged violations and demanding an explanation from the recipient. Star Entertainment has two weeks to respond to the accusations before disciplinary action is taken.
While the casino is likely to face some form of enforcement action – which, under the Casino Control Act of 1992, could involve censure of the operator, penalties of up to A$100 million (£59 million/$69.1 million/€69 million), and suspension or revocation of the casino’s operating license – the specific nature of the action remains unclear.
The notice states that, according to the report, “Star Entertainment is currently not deemed suitable to be involved in or associated with the management and operation of a casino in New South Wales.”
In the days preceding the report’s release, Star Entertainment suspended ASX trading in response to media reports that the casino’s license was in jeopardy.
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