Star Entertainment, one of Australia’s largest casino operators, continues to operate its Sydney casino amidst ongoing regulatory challenges. The New South Wales Independent Casino Commission (NICC) recently imposed a hefty fine of AUD15 million ($10 million) on the company for repeated violations of regulations. In addition, Star’s casino license suspension has been extended, with a regulator-appointed manager overseeing the company until March 31, 2025.
The decision to allow Star to keep its casino running comes after an investigation led by Adam Bell earlier this year, which aimed to assess the company’s efforts to address previous regulatory issues. The NICC’s investigation uncovered persistent issues in Star’s operations, governance, and risk management, despite the company’s claims of improvement. However, NICC’s head commissioner, Philip Crawford, emphasized the economic significance of Star Entertainment, which employs over 9,000 individuals and supports numerous suppliers.
Crawford highlighted that under the leadership of Star’s new CEO, Steve McCann, steps have been taken to enhance accountability and transparency within the company’s management. Nevertheless, he emphasized that Star still has a long road ahead to recover its full license. While the commissioner acknowledged the absence of evidence of criminal activity or money laundering in this instance, he expressed concerns regarding the company’s compliance with regulations.
Star Entertainment has faced mounting financial challenges and operational issues over the past year. The company reported substantial losses of AUD1.69 billion ($1.13 billion) in the 2024 financial year, following a loss of AUD2.44 billion ($1.63 billion) the previous year. To address its financial woes, Star Entertainment is considering drastic measures, such as laying off up to 350 employees and contemplating the sale of assets. Moreover, the company’s stock price has plummeted by more than half in a year, reflecting investor apprehensions about its financial stability.
Overall, despite the challenges ahead, Star Entertainment is working towards improving its compliance and financial stability to regain its full license and secure its future in the Australian casino industry.
