The second inquiry into Star Entertainment’s suitability to hold a casino license in Syndey has found the company’s remedial efforts to have fallen short since the initial probe. [Image: Shutterstock.com]

Concerning findings

The second probe into Star Entertainment’s suitability to hold a casino license in Sydney has concluded that the company remains unfit to regain full control. It halted trading of its shares after the news broke on Friday.

money laundering and links to organized crime

The inquiry in New South Wales (NSW) found that Star is “falling short” on its remedial efforts following the numerous scandals relating to serious issues like money laundering and links to organized crime. The first inquiry determined the Brisbane-based company to be unfit in August 2022 and appointed a special manager to oversee operations.

More issues

Adam Bell, who has led both inquiries, concluded in Friday’s report that there have been four major compliance breaches since the initial probe, including one that led to patrons getting AU$3.2m (US$2.2m) in free cash due to a software glitch on ATMs that lasted for six weeks.

Another finding was the lack of enforcement of the three-hour mandatory break rule for gamblers and then staff falsifying records about these interactions. Star Entertainment was planning to deliver its 2024 fiscal year financial results on Friday before postponing following the report’s publication.

The next steps

The NSW Independent Casino Commission is now deciding on its next move as it breaks down the findings in the report. The regulator’s Chief Commissioner Philip Crawford believes the report’s findings underline the need for a second inquiry and that the casino company hasn’t moved quickly enough to resolve long-running problems.

Star Entertainment has changed its senior management in recent years to try to appease regulators, with Steve McCann taking over as CEO in June.

The Queensland government is also looking at Star’s suitability to run its Brisbane and Gold Coast casinos and was waiting to see the outcome of the NSW probe before proceeding any further with its own assessments.