Australia's Star Entertainment is at risk of losing its casino license or being fined up to A$100 million ($67.2 million) following regulatory breaches uncovered by the New South Wales Independent Casino Commission (NICC) on Friday.
The NICC issued a disciplinary notice to the company, citing significant violations of anti-money laundering protocols, according to a second report released on August 30.
Star Entertainment acknowledged receipt of the notice and stated it is "considering the matters raised" with plans to respond to the NICC by September 27. The NICC has also requested detailed information about the company's current financial position and its proposed steps to address ongoing compliance issues.
The breaches detailed by the NICC include a cash fraud incident, the failure to conduct adequate source-of-wealth checks on high-risk members, and fraudulent guest welfare records that exposed vulnerable customers to greater risks.
This marks the second investigation by the NICC into Star Entertainment. Earlier this year, the regulator expressed concerns that the company had not fully addressed cultural and regulatory failures, particularly after a 2022 inquiry revealed major anti-money laundering and counter-terrorism lapses.
Star Entertainment has 14 days to respond to the "show cause" notice. The company’s Sydney casino license was previously suspended in October 2022, and it was fined A$100 million after being deemed unfit to hold a license.
Adding to its challenges, Star’s shares were suspended from trading on September 2 after it failed to submit its annual financial report for fiscal 2024 by the required deadline.