The Queensland government slapped penalties totalling $100 million $67.92 million on Australia's Star Entertainment Group and deferred the suspension of its casino licences for a year to monitor operations in the state.
A review of the casino firm's responses to Queensland's show cause notices last month showed that there have been major failings by the Star group and its entities, the Queensland government said in a statement.
The state Attorney-General and Minister for Justice Shannon Fentiman found the extent of Star's reception of excluded persons to their casinos and the exorbitant incentives on offer for questionable gamblers appalling, and said it would result in the firm facing disciplinary actions.
Star's shares were stopped in early market hours due to an announcement regarding disciplinary actions. After the statement was released, the shares resumed trading.
The penalties are among a string of actions taken against gambling centres in the country, including the now de-listed Crown Resorts in Victoria, which were charged A $120 million last month on top of a $100 million fine in September for illegally extending credit through cheques.
Casino operations in Australia have been troubled by reports of sidestepping anti-money laundering rules, dysfunctional governance and poor corporate culture, prompting authorities to take stringent disciplinary action.
The regulators launched civil action against SkyCity Entertainment Group's Adelaide casino earlier this week, accusing it of breaching anti-money laundering and counter-terrorism financing laws.
SkyCity acknowledged the penalties and flagged that the civil penalty may be material if the Federal Court accepts claims filed by the regulators.
Queensland has deferred the 90-day suspension of Star's casino licences in the state until December next year, and said it will allow the casino operator time to correct its management and operations. Nicholas Weeks, who is also managing Star's Sydney casino since late October, will be a special manager for the Queensland operations.
The appointment came months after Star was found unsuitable to hold a licence in Queensland.
Minister Fentiman said that if The Star makes satisfactory progress towards rectifying these issues, the special manager and I may decide to postpone or rescind the suspension of licences.