Star Entertainment issued a statement saying it has accepted the findings of the damning Royal Commission’s review into its operations, which found the Australian gambling giant unfit to hold an operating license for its casino in Sydney.
The casino operator further noted that it had taken “significant and urgent” measures to end some unlawful practices that led to the Royal Commission’s findings. These steps included its decision to stop partnering with junket operators, upgrading its surveillance, and developing a complex multi-year plan.
Considering the aforementioned measures, the chair of Star Entertainment, Ben Heap, has addressed the gambling regulator in the state of New South Wales (NSW) – the Independent Casino Commission – asking it for permission to continue operating under the competent authorities’ strict supervision. Mr Heap noted that the Australian gambling giant was ready to do whatever was necessary in line with the regulator’s requirements to restore its Sydney casino to suitability. He further shared that, despite the announcement of its remediation plan, the company’s actions in the business, especially when it comes to the Star Sydney, would speak louder than words for the new line of business behaviour the company has adopted.
As Casino Guardian previously reported, the Royal Commission investigation, headed by Adam Bell SC, was held into the company’s operations earlier in 2022. The inquiry heard allegations of penetration of organised crime, facilitating money laundering and fraud in Star Entertainment’s casino in Pyrmont. After the review was issued, the casino operator was given 14 days to respond to the Royal Commission’s findings, including the conclusion that it was unfit to hold a casino operating permit in Sydney.
Serious Transgressions Found by the Royal Commission Inquiry into Star Entertainment’s Operations
The gambling company’s chair responded to the damning Royal Commission report, saying that Star Entertainment would take measures in order to improve its surveillance technology, its policies regarding compliance, risk and security staff, and to permanently stop its partnership with notorious junket operators. Mr Heap further noted that the casino operator would take action to close the Marquee nightclub.
A total of 130 milestones were included in the remediation plan unveiled by Star Entertainment, with the objectives set to be met over two years. In a statement to the Australian Securities Exchange (ASX), Star Entertainment confirmed that it met eight of these objectives, with another 29 set to be completed by the end of 2022.
The CEO of the Australian gambling giant, Matt Bekier, stepped down from his role earlier in 2022. The company also revealed that the interim CEO of Star Entertainment – Geoff Hogg – filed his resignation on September 26th, with his final day with the company set to be determined. Apart from that, earlier today, the appointment of several positions was announced by Mr Heap, who explained that the new officers will help the Star Sydney casino strengthen both its risk operations and risk and control management. The company has also arranged the establishment of a whistleblower hotline that is expected to be up and running by the end of November 2022.
As confirmed by the company’s chair, an independent Compliance Committee would be appointed for the Australian gambling giant’s casino in Sydney by the end of next month, as recommended by Mr Bell’s report. Mr Heap admitted that Star Entertainment had a lot of work to do in order to restore a constructive working relationship with the NSW Independent Casino Commission, and further noted that the claims that the company failed to act with the necessary urgency were true.
Despite the remedial steps taken by Star Entertainment, the Treasurer of the state of New South Wales, Matt Kean, shared that he still had some concerns about the gambling operator, considering the terrible wrongdoings it had encouraged throughout the years. The state’s Premier Dominic Perrottet refused to comment on whether the Australian casino giant should be allowed to keep its operating permit, saying that the NICC was the competent body to decide that. He, however, described the wrongdoings found by the Royal Commission as “completely unacceptable”.
- Author
Olivia Cole
