Star Entertainment Allowed To Keep Casino Open But Forced To Pay Big Fine
Star Entertainment, Australia’s 2nd largest casino operator, has been told it can keep its Sydney casino open but a regulator-appointed manager will continue to have oversight over its operation and the group will be forced to pay a AU$15 million fine. The NSW Independent Casino Commission said that it would reassess Star Entertainment’s license suitability on March 21, 2025.
Australia has reasonably open physical gambling laws, with more than a dozen casinos operating across the country, and gaming machines and sports betting venues also prevalent in most towns and cities. Online gaming is not as fully regulated, with players generally using offshore and Bitcoin casinos, such as those on Business2Community’s list. According to casino expert Nikita Jones, as long as these online casinos do not specifically target Australian gamers, they do not fall foul of the country’s anti-gambling laws.
Star Entertainment is one of Australia’s largest casino groups and operates three of the country’s 14 casinos. On the surface, Star Entertainment is seen as something of a success. However, the group is currently struggling under the weight of Australian gaming laws. Especially anti-money laundering and organized crime laws.
In September, Star Entertainment opened the doors of its new casino and precinct in Brisbane. But, within days, trading in Star shares had been halted by the ASX as the group failed to submit its financial results on time. It has been reported that the Queensland government is considering offering assistance to help ensure the company doesn’t go under.
The group’s troubles started in 2022 when a report found that it had not reacted appropriately to prevent money laundering from taking place in its NSW casino. The Bell review determined that Star Entertainment was not fit to retain its casino license. Regulators suspended the casino license, appointed an independent manager, and fined the group $100 million.
Four times since the initial license suspension, regulators have determined that the group has not been doing enough to make improvements and that it continues to fall short of requirements. As a result of these findings, it will remain under special management until at least March 2025, and an additional $10 million fine has been levied against it. The Queensland government also found Star Entertainment guilty of failing its requirements, although it stopped short of suspending its license.
Following financial difficulties, undoubtedly as a result of the fines the group has received, Star Entertainment has asked for financial help from the NSW and Queensland governments. NSW refused the request, fearing that the money would be used to help fund the company’s planned expansion in Queensland.
Queensland lawmakers have reportedly taken the first steps to delay a $300 million tax bill, however. The government said that it was considering the casino’s employees and that while negotiations may not prove successful, it was important that they at least considered all options. Negotiations have been ongoing for a few weeks and no outcome has been announced, as yet.
