According to an ASX announcement made by The Star Entertainment Group Limited (The Star), Hard Rock’s Pacific partner has been among the entities that have approached The Star with intentions of making a reported takeover deal. The news follows last week’s disclosure that AUSTRAC and SkyCity have proposed for the casino resort to pay a fine of AU$67 million for money laundering breaches.
Further details on what Hard Rock’s interest in The Star entails have not yet been provided, but the gambling company did clarify that no “substantive discussions” on a potential agreement have been made thus far. Nonetheless, the news was received positively by the stock market, with Reuters reporting that the price of The Star’s shares saw an increase of over 20% not long after the announcement’s publication.
The Star also stressed that it is currently prioritising its remediation process and The Bell Two hearings. The company has been taking remediation measures for quite some time now, seeing as in 2022, the NSW Independent Casino Commission (NICC) set out to investigate The Star due to money laundering breaches. Led by Adam Bell SC, the probe eventually led to The Star Sydney being deemed unfit to retain a licence and paying AU$100 million in fines for multiple regulatory failures. The second investigation was launched earlier this year and is currently underway.
The Star’s operations in Queensland were also subject to scrutiny and regulatory action by the local gambling watchdog, and there had been plans for The Star to be stripped of its Queensland licence later this month. Last week, however, The Star announced that the Office of Liquor and Gaming Regulation has decided to delay the revocation until December 20th, 2024. The Bell Two was cited as the primary reasoning, as Queensland regulators are looking to see its results before taking further action.
Another Operator is Reaping the Consequences of AML Failures
While things might be looking up for The Star, as indicated by the potential Hard Rock proposal, another Aussie gambling and entertainment giant is facing its own regulatory issues. May 17th saw SkyCity Adelaide Pty Ltd (SkyCity) and the Australian Transaction Reports and Analysis Centre (AUSTRAC) announce that they have reached an agreement on the punishment SkiCity is to face for failures to adhere to Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
The hearing is scheduled for June 7th, 2024, and if the settlement is reached as per the proposal, SkyCity will pay AU$67 million in financial penalties. According to Brendan Thomas, currently serving as the CEO of AUSTRAC, SkyCity’s AML negligence had been “allowed to continue unchecked for many years,” which is why AUSTRAC is addressing the situation in such a manner.
Besides issues pertaining to Australian gambling companies, the month of May also saw the unveiling of a major case with regard to sports betting and match-fixing. Namely, three prominent players were arrested last week over their alleged involvement in betting corruption. The investigation and subsequent arrests were carried out by the New South Wales Police Force.
- Author
Daniel Williams
