This article is from the Australian Property Journal archive
THE Star has been hit with a whopping $100 million fine and had its NSW casino licence suspended by the NSW Independent Casino Commission (NICC) after an inquiry that heard allegations of criminal activity, money laundering and fraud on its Pyrmont premises.
Manager Nicholas Weeks will oversee operations for at least 90 days and until Star Entertainment Group can show it is again fit to hold a licence following the findings of the Bell Report.
The suspension comes into effect on Friday.
Weeks will also complete a review into the casino’s culture that will impact remediation.
The $100 million fine is the maximum penalty allowed under the NSW government’s new casino regulation laws introduced in August – just as rival Crown Sydney reopened on a conditional basis having also been found unfit to hold a gaming licence due to links to money laundering and organised crime early last year, while Crown Resorts was hit with an $80 million fine earlier this year by the Victorian gaming authority.
“The NICC has resolved that it is no longer in the public interest that The Star should remain in control of that licence, and that The Star is not currently suitable to be the holder of the licence,” said NICC chief commissioner Philip Crawford.
“The Star’s public communications to shareholders and its submission to the NICC’s show cause notice have demonstrated genuine contrition and a desire to work openly and transparently with the NICC to try to preserve the licence and protect the many jobs that depend on it being operable.
“If it were not for The Star’s change in attitude and our belief that it is in the public interest to protect the thousands of jobs at risk, there might have been a different outcome.”
Star has already written down the value of the casino to the tune of $162.5 million.
Star last month accepted the findings of the inquiry headed by Adam Bell SC and said it had committed to a plan to restore its suitability that consisted of 130 milestones to meet over two years, including exiting junkets, increasing risk, compliance and security staff, and leadership changes.
The sanctions were handed down on the first day of new chief executive Robbie Cooke’s tenure.
Its shares entered a trading halt ahead of the announcement.
