The Star Entertainment Group has been found unfit to hold an operating licence for its casino in Sydney after some damning pieces of evidence were presented to the investigation.
The probe into the Australian gambling giant, led by Adam Bell SC, was carried out earlier in 2022 and heard allegations of links to organised crime, money laundering, and fraud at the company’s casino in Pyrmont.
As revealed by the boss of the NSW Independent Casino Commission, Philip Crawford, the report detailed that the harm minimisation measures taken by the Star Entertainment were barely sufficient and adequate. He noted that the gambling operator had demonstrated a breathtaking institutional arrogance and an appalling willingness to take risks while pursuing their financial goals. Mr Crawford further noted that the Star Entertainment’s corporate culture remained the major concern of the watchdog, especially considering the fact that was not a matter that could be fixed quickly in the shorter term.
The chair of the NSW Independent Casino Commission confirmed that the Star Entertainment had allowed organised crime and money laundering activities to infiltrate its Pyrmont casino. What is more, the company deliberately tried to cover its wrongdoings, and some of the conduct continued even after the beginning of the public inquiry. Commissioners found that the company’s financial goals had been the main driver of their conduct.
Serious Corporate Culture, Governance and Risk Management Failures Found in Star Entertainment’s Policies
The investigation found there were some very serious instances of governance, cultural, and risk management failures of the Star Entertainment’s policies before and during the reviewed period.
According to the findings of the review, the gambling company’s failure to report the use of China Union Pay (CUP) cards and the serious misconduct by the notorious junket operator Suncity in Salon 95 only manifested a corporate culture that put business goals, and not compliance goals, first. The report also says that the Star Entertainment had treated NSW gambling regulatory body – the Independent Liquor and Gaming Authority (ILGA) – with disrespect and considered the regulator a mere obstacle that needed to be worked around.
The Commission’s review of the Star Entertainment’s operations has not suggested what changes needed to be implemented in order for the gambling company to regain its suitability to operate a casino. The Australian gambling giant is now given 14 days to respond to the report’s findings that identified a number of very specific violations of the Casino Control Act, on one hand, and of the internal control measures under which the Star Entertainment’s casino is supposed to operate, on the other hand.
The boss of the NSW Independent Casino Commission revealed that, at the beginning of the inquiry, The Star Entertainment admitted that it had been unfit to hold its casino operating licence. However, in recent times, the company has made eight submissions explaining why it was suitable to continue offering its services now. Mr Crawford revealed that Adam Bell SC had not agreed with any of the eight submissions and found that the casino and gambling giant remained unfit to hold a Sydney casino licence.
Following Disciplinary Action against the Australian Casino Giant Remains Unclear
As confirmed by the chair of the state’s gambling regulatory body, the Commission had sent a show cause notice to the Star Entertainment earlier today, asking the company to provide evidence why it should not take disciplinary action against it.
The aforementioned disciplinary actions could include the suspension or revocation of the gambling operator’s casino licence, the implementation of monetary penalties, or a combination of these measures. For the time being, Mr Crawford was unable to say which one of these measures would be imposed on the Star Entertainment but highlighted that doing nothing was not an option.
He further revealed that there were no adverse findings against board members or directors of the Australian gambling giant, but explained that failures occurred because there was never an impartial oversight over the company’s practices. The investigation found individual directors and board members had no clue what was going on in the company, which basically means they did not manage to do their jobs right. Furthermore, the corporate culture was putting financial goals over compliance with federal and state rules, which eventually resulted in exposing the practices of the Star Entertainment to significant risks of infiltration of organised crime, money laundering, and fraud. The company also deliberately deceived and misled its own board of directors, its own bank, and the state’s gambling regulatory body.
According to the boss of the state’s gambling watchdog, it could take the Star Entertainment at least a year and a half, if not longer, to fix its corporate culture and make things right.
- Author
Olivia Cole
