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by Stuart Condie
SYDNEY — Star Entertainment Group Ltd. has been fined A$100 million ($67.7 million) for the second time in less than two months for a number of issues including actively courting gamblers banned in other Australian states.
The ASX-listed casino and resort operator was also told on Friday by the Attorney-General of the Australian state of Queensland that the casino licenses at two of its properties would be suspended if the company did not take adequate remedial action against its management and operations.
“It is clear that the Star Group and its entities have made significant mistakes. I am appalled by The Star’s actions in welcoming excluded people to their casinos and the disproportionate rewards offered to problem gamblers,” Shannon said of Queensland State Attorney General Fentiman.
The Queensland government ruled in October that Star was not suitable to hold a casino license in the state, mirroring a similar finding in neighboring New South Wales.
That same month, New South Wales fined Star $100 million after state regulators found large amounts of cash evading anti-money laundering protocols. The NSW regulator also found Star offered VIP guests free drinks as an inducement to gamble and allowed vulnerable customers to place bets for more than 24 hours at a time.
One of the findings of the Queensland review was that Star’s anti-money laundering program was deeply flawed and continued for several years.
The Queensland government on Friday appointed an independent manager, at Star’s expense, to oversee operations. It also suspended Star’s casino licenses in Brisbane and the Gold Coast for 90 days, but delayed the measure until December 1, 2023 because Star employed so many people, giving Star a chance to turn around.
Star reported revenue of A$1.53 billion in its most recent financial year to June 30. It slid to a $198.6 million loss after a year of Covid-19 disruption and regulatory issues wrote down the value of its Sydney casinos.
Write to Stuart Condie at stuart.condie@wsj.com
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