Star Entertainment Group is currently facing urgent pressure from regulators to address significant compliance failures and operational issues at its Sydney casino. The New South Wales Independent Casino Commission (NICC) has given the company a strict deadline of 14 days to come up with a detailed plan to rectify these problems, as reported by Bloomberg. This plan must outline how Star will address its money laundering and operational issues that have been highlighted in a scathing report that questioned the company’s ability to effectively manage the casino.

The NICC’s latest investigation revealed four major violations of Star’s gambling permit related to breaches of anti-money laundering practices. These violations included instances of cash scam events, insufficient background checks on high-risk clients, and falsified records regarding the care of vulnerable visitors. These compliance failures have raised serious concerns about Star’s ability to conduct its business responsibly and in accordance with legal regulations.

The situation for Star remains precarious as the NICC has issued a “show cause” notice to the company, with a deadline of September 27 to provide reasons why it should not face severe penalties. These penalties could include the cancellation of Star’s license to operate the Sydney casino or a hefty fine of up to AUD100 million ($67.2 million). Additionally, the NICC has requested more information from Star regarding its financial practices and the steps it plans to take to rectify the identified issues.

The pressure is now on Star’s new CEO, Steve McCann, to navigate the company through this challenging period. McCann must devise a strategic plan to address the compliance failures while also securing the necessary funds for ongoing projects, such as the development of a new casino resort in Brisbane. The repercussions of these regulatory findings could potentially result in the cessation of Star’s operations in Sydney, further complicating the company’s financial outlook.

Even if Star manages to retain its license, it will undoubtedly be subjected to heightened regulatory scrutiny and increased operational costs as it works towards rebuilding trust with regulators and the public. In a statement released last Friday, Star confirmed ongoing discussions with regulators, lenders, and state governments as they seek to address the pressing compliance issues at hand.