The NSW casino regulator will fine Sydney’s The Star a record $100 million for its failure to stem criminal activity and money laundering within its casinos.
The Sydney Morning Herald and The Age has confirmed with multiple sources that the Independent Casino Commission will hand down the decision on Monday, which is also the first day on the job for The Star’s new chief executive Robbie Cooke. The sources were not permitted to disclose the decision publicly but confirmed the announcement would be made.
Sydney’s scandal-plagued Star Casino.Credit:Oscar Colman
Last month the commission published the report by Adam Bell, SC, which found The Star was unfit to hold a casino licence, with chief commissioner Philip Crawford accusing the company of “breathtaking institutional arrogance”.
In response to the report, the casino group on said it was willing to do “whatever necessary” to restore its suitability as an operator and appointed an independent monitor as well as committed to a cultural overhaul.
The renewal plan, scheduled to be completed by the end of 2024, will be run by an executive sponsor and tracked by international law firm Allen & Overy, which will act as the group’s independent monitor.
The Bell report followed a public inquiry sparked by an investigation by the Herald, The Age and 60 Minutes that alleged the casino enabled suspected money laundering, organised crime, large-scale fraud and foreign interference for years – despite its board being warned money laundering controls were failing.
The investigation is a finalist in the 2022 Walkley Awards.
The $100 million fine is the maximum penalty possible under laws introduced by the NSW government in August, but would allow the casino to retain its licence – albeit likely with conditions.
The quantum exceeds the $80 million fine slapped on Crown Resorts by Victorian gaming authorities earlier this year.
Crawford declined to comment on Sunday. NSW Premier Dominic Perrottet previously called The Star’s performance “absolutely horrendous” following the release of the Bell report.
The casino’s former chief executive Matt Bekier stood down during the public inquiry, as did several other senior executives. Acting chief executive Geoff Hogg resigned last month, with Cooke to start in the top job on Monday.
Cooke said earlier this month that watching the revelations that were uncovered by the Bell and Gotterson inquiry in Queensland had been “confronting”.
“The business had lost its way in a number of areas, but I’m committed to rehabilitating it and restoring the group to suitability [to hold its casino licenses],” Cooke said.
Star Entertainment declined to comment on Sunday.
Under the new laws brought in by the state government in August, senior casino executives and board members will also be personally liable for wrongdoing they know about but fail to halt.
Crawford flagged his new regulator would be taking no prisoners in its approach, and warned of “very severe consequences” for misconduct.
“We’re going to be a lot more vigilant and we’ll have many more tools to assist us in that process,” he said last month.
“The ability of casinos to hide things from us, which they’ve actively done in recent years, will not be available to them.”
The office of Racing Minister Kevin Anderson was contacted for comment.
with Amelia McGuire
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