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(Reuters) – The Queensland state government on Friday fined Australia’s Star Entertainment Group a total of 100 million Australian dollars ($67.92 million) and suspended its casino license for a year to oversee operations in the state.
The Queensland government said in a statement that a review of the casino company’s response to the Queensland show reason notice issued last month revealed “significant failures by Star Group and its entities”.
The state’s Attorney General and Attorney General Shannon Fentiman found the extent to which the Star hosts “people excluded from casinos and exorbitant rewards for dubious gamblers” alarming and said it would The company faced disciplinary action.
Shares in Star were halted in early trading pending an announcement of a “decision on disciplinary action”. Shares resumed trading shortly after the announcement.
The penalties are one of a series of actions targeting the country’s gambling hubs, including the now-delisted Crown Resorts in Victoria state, which was fined A$100 million last month in addition to being fined A$100 million in September for illegally extending credit by cheque. A fine of A$120 million was imposed.
Australia’s casino business has been plagued by damning reports of sidestepping anti-money laundering rules, mismanagement and poor corporate culture, prompting authorities to seek tough disciplinary action.
New Zealand-listed SkyCity Entertainment Group’s Adelaide casino came under scrutiny earlier this week after regulators launched civil proceedings to impose penalties alleging breaches of anti-money laundering and counter-terrorism financing laws.
SkyCity acknowledged the penalty and said civil penalties “could be significant” if the federal court accepted the regulator’s claim.
Queensland on Friday delayed the 90-day suspension of the state’s Star casino license until December next year, saying it would give the casino operator enough time to “remediate its management and operations and restore them to a suitable position”.
The regulator appointed Nicholas Weeks as special manager of the Queensland operation, who has also been managing the Star’s Sydney casino since late October.
The appointment comes months after Star was found unfit to hold a license in Queensland.
Referring to Queensland’s decision to suspend, Minister Fentiman said, “Should The Star make satisfactory progress in rectifying these issues, the Special Manager and I may decide to defer or lift the suspension.”
($1 = 1.4723 AUD)
(Reporting by Roushni Nair, Bengaluru; Editing by Uttaresh.V and Dhanya Ann Thoppil)
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