(Reuters) – Australia’s Star Entertainment group said on Thursday it would implement a sweeping reform plan to improve its management, culture and controls, days after an investigation found the casino operator was unfit to obtain a license in Sydney.
The investigation report, released on Tuesday, into alleged violations of anti-money laundering and criminal intrusion laws, gave Australia’s second largest casino operator 14 days to convince NSW authorities that they should be allowed to keep its operating licence.
Star shares rose 3.4% to A$2.77 after the announcement.
Interim Chairman Ben Heb said the culture at the company needed to change following the findings of the investigation.
“Examples of actions we have taken to date include introducing stronger controls, strengthening our regulatory compliance functions, training, adding new members to our board of directors … appointing an independent monitor to oversee our progress,” Hebb said in a statement.
Australia’s casino sector has faced intense scrutiny over the past three years after star rival Crown Resorts was found unfit to obtain gambling licenses due to money laundering, prompting investigations by some states.
