The gambling regulator in New South Wales (NSW) is to impose a record AU$100-million fine on The Star Sydney because of the casino operator’s failure to hold back money laundering and other criminal activity from its casinos.
According to reports of local media hubs, including The Sydney Morning Herald, sources familiar with the matter confirmed that the Independent Casino Commission will hand down its final decision on October 17th, when the new chief executive officer of The Star Entertainment, Robbie Cooke, is also set to take over the reins of the company. The unnamed sources said they were not allowed to disclose the decision of the regulator publicly for the time being but said that the announcement involving the fine would be made.
In September 2022, the NSW Independent Casino Commission published Adam Bell SC’s report, which found that The Star Entertainment was not suitable to hold its casino licence in Sydney. At the time, the chief commissioner of the watchdog – Philip Crawford – accused the gambling operator of exceptional institutional arrogance.
The casino group responded to the report, saying that it was ready to do whatever was necessary in order to restore its suitability to hold its operating licence in Sydney. As Casino Guardian reported, it made a commitment to a corporate culture overhaul and also appointed an independent monitor as part of the process.
The Star Entertainment Remains Committed to Improve Its Corporate Structure in Order to Keep Operating Licences
Reportedly, the renewal plan of the Australian gambling giant is expected to be completed by the end of 2024. It is set to be operated by an executive sponsor and tracked by Allen & Overy, an international law firm, which is set to act as the aforementioned independent monitor of The Star Entertainment.
The AU$100-million fine is the largest penalty possible under the existing legislation of New South Wales that was introduced by the state Government in August. The monetary fine, however, would not affect the operating permit of the company, which is likely to be allowed to keep its Sydney licence under certain additional conditions. The rumoured penalty exceeds the AU$80-million fine that was imposed by the gambling regulatory bodies in Victoria on Crown Resorts, the major competitor of The Star Entertainment Group, earlier in 2022.
Under the new gambling laws that the NSW Government unveiled in August, senior casino executives and board members are also to bear personal liability for any wrongdoings they were aware of but failed to halt.
As previously reported by Casino Guardian, Adam Bell SC’s report followed a public inquiry into the gambling operator triggered by a series of publications in local media hubs alleging the casino company had enabled suspected money laundering, large-scale fraud and organised crime and allowing foreign interference for years, although its board had been warned that The Star Entertainment’s money-laundering controls were not effective.
The Star Entertainment faced much criticism after the findings, with Dominic Perrottet, the NSW Premier, describing the company’s performance as “absolutely horrendous” after Bell SC released his report. As a result of the findings, the former chief executive officer of the operator, Matt Bekier, decided to step down from the company, along with a number of other senior executives. His position is set to be taken over by Robbie Cooke on October 17th.
- Author
Olivia Cole
