Star Entertainment Receives the Largest Fine Ever Imposed on a Casino

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: October 17, 2022

The New South Wales (NSW) government has made a decision about Star Entertainment. The casino operator will carry on its operations in the state but will pay a huge fine and take a break for the next few months.

Australian authorities recently reported that the license of Star Entertainment had been suspended for 90 days. This was prompted by the investigation that revealed alleged connections to money laundering, organized crime, and other violations. They have been in the news a few times this year, and they also lost a lawsuit this year for trying to deny a gambler’s winnings.

As a “disciplinary measure,” the NSW Independent Casino Commission (NICC) has also imposed a fine of US$62.3 million (AU$100 million) on the Sydney Star casino. It’s the highest fine ever levied against a casino, made possible by updated laws that took effect this past August.

The move follows the release in mid-September of a report that was ordered by the NICC and headed by Attorney Adam Bell. The publication addressed claims of fraudulent operations and alleged money laundering at the Star Sydney.

The Sydney casino reportedly disguised US$560 million (AU$900 million) as spending by guests who used China UnionPay cards. It attempted to conceal the true purpose of the money, claiming it was hospitality expenses.

Australia Regulators Repeatedly Refused to Revoke Star Licenses to Prevent Loss of Jobs

At a recent press conference in Sydney, Philip Crawford, who’s the chief commissioner of the NSW Independent Casino Commission, said that Nicholas Weeks has been appointed by the authorities to oversee the casino from now on.

Star will carry on operations as a company, but the casinos won’t operate. The license will be with Nicholas Weeks as the NSW decides on additional measures to add. More executive departures are likely because of the ruling.

Permanently pulling Star’s license was not an option. The operator employs almost 8,000 people and generates a lot of revenue for the NSW. Its permanent shutdown would have had numerous negative effects on the economy.

Philip Crawford stated that Australia’s regulators repeatedly refused to revoke Star and Crown Resorts’ licenses in other to prevent the loss of jobs. Despite both operators’ serious crimes, they did not want to cancel their licenses.

Most States Having Casino Present Are Now Reforming Their Laws Due to the Embarrassment of Star and Crown

Changes are still being made due to the embarrassment Star, and Crown brought to Australia. All states having a casino presence are updating their gambling regulations. NSW has already started the process, and adjustments will continue as time goes on.

The state will increase its supervision of casinos. It will depend on the appointment of independent monitors to keep an eye on all operators, hoping they will stay objective. The state will also ensure its assets are covered. When Crown Resorts negotiated for its license in NSW, the state inserted a clause that allows it to compensate Crown for any revision to its gaming license. State officials want to prevent Star from attempting a similar trick.

As the NICC works with other government authorities on reforms, more adjustments will be made. The objective is to put the reforms in place as soon as possible to prevent a repeat of the same incident.