Star looks into the abyss as NICC announces investigation findings
It’s been a challenging period for one of Australia’s largest casino operators, as Star Entertainment faces intense scrutiny over the nature of its financial conduct. As it awaited the verdict of a recent New South Wales-based investigation, the gaming firm felt compelled to suspend its share trading activities. Now, the result of the probe conducted by the south-eastern state’s Independent Casino Commission (NICC) has served to confirm the ailing company’s worst fears.
In their damning findings report, the NICC declared that there were ‘systemic governance, risk, and cultural failures’ within Star’s operational approach. Indeed, such was the scale of Star’s illicit financial activity, the Commission has declared that the firm is unfit to possess a gaming license.
The probe, which was launched in September 2021, addressed a number of allegations leveraged at the ailing casino giant. Perhaps the two most noteworthy contraventions alluded to significant anti-money laundering breaches, as well as illegal manipulation of the UnionPay banking platform. Indeed, the latter issue will also be reviewed when the Queensland authorities mobilize their own probe into Star, as New South Wales northern neighbour confirmed its intention to investigate at the beginning of the summer.
‘’The report is, quite frankly shocking. It provides evidence of an extensive compliance breakdown in key areas of Star’s business’’ said Philip Crawford, the Chief Commissioner of NICC, adding ‘’the institutional arrogance of this company has been breath taking, and their willingness to take risk in pursuit of financial goals has been appalling’’.
Media reports earlier this week suggested the Brisbane-headquartered company would meet a similar fate to that of Crown Resorts, who have also been the subject of internal state probes. In Crown’s case, officials permitted the continuation of a casino license, but this was caveated by a stringent set of conditions. However, given the nature of NICC’s investigation notes, Star may not receive a similar reprieve.
The troubled operator has two weeks in which to respond to the findings; the NICC have already announced it will resist delivering any punishment until it’s received Star’s reply.
