(Reuters) – Star Entertainment Group on Tuesday approved the findings of an investigation that said the casino operator was unfit to obtain a license in Sydney, but said it should be allowed to continue operating under “strict supervision”.
The country’s second-largest casino operator said in a statement that it had developed a remedial plan outlining measures to address the “root-cause failure” mentioned in the investigation report released earlier this month.
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.
The New South Wales (NSW) state gambling regulator said its report identified “systematic governance, risks and cultural failures” at Sydney’s Star Casino.
“Huge sums were disguised by the casino in the form of hotel expenses and huge sums of money that evaded anti-money laundering protocols multiple times, mostly through a secret room with a second cash cage,” NICC Chairman Philip Crawford said.
Starr said Tuesday that NICC should allow the company to “continue to operate the license, under strict supervision and taking responsibility for key stages in the reform plan.”
Starr said her remedial plan will focus on a “multi-year transformation” of governance, accountability, culture, risk management practices and compliance.
The casino operator plans to finalize the overhaul plan budget over the next month and complete the plan by the end of 2024.
