The Queensland government has fined Star Entertainment Group $100 million and threatens to revoke its casino license for 90 days if the company fails to “remediate its management and operations.” This is because the company was previously deemed unsuitable to hold a license as required by land-based and online casino operations.
The Queensland government stated that “severe violations by the Star group and its affiliates” were discovered after the casino company's responses to the state's “show cause” notices from the previous month were reviewed.
Star operates casinos in Brisbane and the Gold Coast. It aims to relocate its Brisbane operations from the old Treasury building to a new $3.6 billion structure at Queen's Wharf in 2019.
Shannon Fentiman, the state's Attorney-General and Minister of Justice, deemed it repulsive that Star allowed “excluded people into their casinos” and offered “expensive incentives” to problem gamblers. She stated that the corporation would be punished.
The Queensland government stated that “severe violations by the Star group and its affiliates” were discovered after the casino company's responses to the state's “show cause” notices from the previous month were reviewed.
Fentiman deemed it repulsive that Star allowed “excluded people into their casinos” and offered “expensive incentives” to problem gamblers. She stated that the corporation would be punished.
The trading of Star's stock was halted early in the day so that an announcement could be made on “decisions on disciplinary procedures.” Almost immediately after the statement was given, trading resumed.
Illegitimate Junket Collaboration
Casinos Austria International confessed guilt immediately. During the investigation, the business moved swiftly and collaborated with authorities.
To comply with the Casino Control Act, Casinos Austria International began creating awareness among its employees.
Ex-judge Robert Gotterson stated in October that the corporation did not merit a casino license and had violated its anti-money laundering obligations significantly. Gotterson also discovered that Star had intentionally deceived the regulator and had a poor corporate culture that was “one-eyed focused” on profit at the detriment of customers.
Queensland has recruited Wexted Advisors' Nicholas Weekes. After a similar examination, he was also placed in command of Star's operations in New South Wales. New South Wales also imposed a $100 million penalty on Star.
The fines are part of a spate of measures taken against gambling establishments in the country, including the now-delisted Crown Resorts in Victoria, which was fined A$120 million last month and a A$100 million fine in September for illegally extending credit through checks.
Casino operations in Australia have been severely impacted by allegations of anti-money laundering crimes, poor governance, and poor corporate culture, prompting authorities to seek heavy fines.
Murky Waters For The Australian Casino Industry
The Australian casino industry has been under scrutiny for a lot of years. Long-term investigations and regulatory probes into The Star Sydney, The Star Gold Coast, The Crown Melbourne, The Crown Perth, and The Crown Sydney uncovered several infractions relating to the casinos' interactions with Chinese junket operators. Due to these infractions, several casinos could lose their licenses.
Casino operations in Australia have been severely impacted by allegations of anti-money laundering crimes, poor governance, and poor corporate culture, prompting authorities to seek heavy fines.
Fentiman was appalled by the extent of Star's efforts to get banned individuals into its casinos and the exorbitant rewards offered to problem gamblers.
She stated, “Queensland casinos must be honest, and it is evident that the Star group and its enterprises have failed badly.”
The regulator initiated a civil proceeding to punish the SkyCity Entertainment Group-owned Adelaide casino this Monday. The casino is accused of violating laws prohibiting money laundering and terrorism sponsorship.
SkyCity confirmed the sanctions and stated that the civil penalty “may be hefty” if the Federal Court agrees with the regulator.
The Queensland casino licenses of Star will not be revoked until December of next year. The casino operator must “remediate its management and operations and return to a fit state.”
The regulator has appointed Nicholas Weeks, who has been in charge of Star's Sydney casino since late October, as the business's special manager in Queensland.
Along the Brisbane River, the new Queen's Wharf casino is being constructed and marketed as a showcase property. Star and its Hong Kong-based partner are constructing it on government-owned land in Queensland.
In 2015, Queensland and the Star-led group signed the deal. As the project nears completion, news about the company's behavior and issues regarding its licensing will probably make next year's launch less thrilling.
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