A damning audit concluded that Sydney’s Star casino frequently broke the law, deceived banks, and was penetrated by criminal groups for years. As a result, the casino’s license may be terminated.
The casino was deemed to be unfit to have a casino license, according to the report, which was published on Tuesday after a lengthy royal commission-style investigation by the NSW gaming regulator.
The newly formed NSW Independent Casino Commission said that as a consequence, it has sent the casino business with a show cause notice, requiring it to defend itself against further disciplinary action.
The Star casino in Sydney (above) has been deemed ‘unsuitable’ to hold a gaming licence after a report found it repeatedly breached the law, misled banks and was infiltrated by criminals
Revocation of the casino licence and the issuing of fines are among the options available.
‘Doing nothing is not an option,’ Chief Commissioner Philip Crawford told reporters.
‘It’s not a question of pin the tail on the donkey – it wasn’t one individual who was masterminding the conduct and attitude of the casino.
‘The institutional arrogance of this company has been appalling.’
No adverse findings were made about the directors, with Mr Crawford finding they ‘didn’t have a clue what was going on in their own casino’.
The inquiry was sparked after media reports alleged Star enabled suspected money laundering, fraud and foreign interference, and organised crime, at gaming venues including its Sydney casino.
Chief Commissioner Philip Crawford (above) called for the Star to face harsh punishment saying ‘doing nothing is not an option’
Senior management admitted junket operator Suncity continued operating inside Star despite a Hong Kong Jockey Club report in 2019 linking the group to triads, ‘large scale’ money laundering and drug trafficking.
Star managing director Matt Beiker resigned inside the third week of hearings after an auditor said he’d been berated by the casino boss for reporting the organisation was not doing enough to comply with anti-money laundering and counter-terrorism financing laws.
He later blamed a poor culture at the casino for its failure to clamp down on money laundering and misleading banks and the regulator, revealing he personally green-lit an $11million line of credit to a high roller and okayed illegal lending.
Board chairman John O’Neill, chief financial officer Harry Theodore, chief casino officer Greg Hawkins, and chief legal and risk officer Paula Martin all resigned as a result of further disclosures.
Sarah Scopel, the former group treasurer for Star, also left her equivalent position at Woolworths Group.
The anticipated publication of the report caused the ASX-listed Star Entertainment Group to suspend trade on Monday morning.
Its stock price ended the day on Friday at $2.66, down roughly 40% from this time last year.
The casino firm is also dealing with an ongoing investigation into its activities in Queensland.
In that investigation, it was revealed that employees had misreported $55 million in gaming transactions as hotel costs and had allowed a high roller to play for years despite being banned from casinos in two states and having connections to the Italian mafia.