The findings of an inquiry by the Reuters- Star Entertainment Group stated that the casino operator is unfit to hold a licence in Sydney but said it should be allowed to operate under strict supervision. The country's second-biggest casino operator has developed a remediation plan that addresses root-cause failures mentioned in the inquiry report released earlier this month.
Australia's casino sector has been under scrutiny over the last three years after Star's larger rival Crown Resorts was found unfit to hold gambling licences on account of money laundering, prompting some states to launch investigations.
The state gambling regulators of New South Wales NSW have identified systemic governance, risk and cultural failings at Star's Sydney casino, according to a report by the New South Wales NSW state gambling regulator.
Huge amounts of money were disguised by the casino as hotel expenses and vast sums of cash evaded anti-money laundering protocols multiple times, mostly through a secret room with a second cash cage, according to NSW Independent Casino Commission NICC Chief Commissioner Philip Crawford.
The license, under strict supervision, and held accountable to the milestones on the Remediation Plan, should be allowed by the NICC, according to Star on Tuesday.
Star said that it will focus on a multi-year transformation of governance, accountability, culture, and risk and compliance management practices.
The casino operator plans to finalize the budget for the remediation plan over the next month and conclude the plan by the end of 2024.