Australia’s Star Entertainment Group, one of the country’s leading casino operators, is facing a potential licence pull or hefty fine of $67 million for multiple regulatory breaches, according to a report by Reuters.
The New South Wales Independent Liquor and Gaming Authority has launched an investigation into The Star, which operates casinos in Sydney, Brisbane, and the Gold Coast, following allegations of money laundering and organized crime infiltration.
The investigation, which began earlier this year, has reportedly uncovered a range of serious breaches, including failures to comply with anti-money laundering laws, improper handling of customer complaints, and lax controls around high-roller accounts.
In a statement, The Star said it is cooperating fully with the investigation and has implemented a range of measures to improve its compliance and oversight processes. However, the company acknowledged that it could face significant penalties for its past failures.
Under Australian law, the regulator has the power to revoke a casino licence if it believes a company has engaged in serious breaches of the rules. In addition, The Star could be fined up to $67 million for its regulatory failings.
The allegations against The Star come at a time of increased scrutiny of the country’s gambling industry, which has been the subject of numerous scandals in recent years. The regulator has taken a tough stance on companies that fail to meet their obligations, imposing hefty fines and even revoking licences in some cases.
The potential penalties facing The Star are a stark reminder to all casino operators of the importance of maintaining high standards of compliance and oversight. The industry will be watching closely to see how the regulator’s investigation unfolds and what action, if any, is taken against the company.
For now, The Star remains open for business, but its future hangs in the balance as regulators decide on the appropriate course of action. The company’s shareholders and customers will be eagerly awaiting news of the outcome of the investigation and the potential consequences for this once shining star of the Australian gambling industry.