Star Entertainment Group hit with record $100million fine in Queensland

Beleaguered casino operator Star Entertainment has been fined $100 million after a breach investigation in Queensland.

State Attorney General Shannon Fentiman said the record fine sends a strong and clear message that illegal and criminal behavior would not be tolerated in casinos.

The coup comes after the gambling giant was also fined $100 million and had its casino license suspended after an investigation in New South Wales prompted the Queensland investigation.

Ms Fentiman said Nick Weeks had been appointed special manager to reform the ASX-listed company’s operations in Queensland.

Queensland Attorney General Shannon Fentiman (pictured) said the record fine sends a strong and clear message that illegal behavior in casinos will not be tolerated.

Mr Weeks has also been appointed by the NSW authorities to rehabilitate Star’s casino operation in Sydney.

Star faces a 90-day suspension of its two casino licenses if it does not enact the reforms by December 2023.

“This is a significant financial penalty of $100 million, which sends a very strong message to Star that they absolutely have to get it right and they have to get back to fitness,” Fentiman told reporters.

“Essentially, this means Star has 12 months to get their house in order if they don’t want to see a 90-day suspension of their license,” Fentiman said Friday.

“These sanctions have been carefully considered following the damning findings of the Gotterson review and considering Star’s responses as part of the show cause process.”

Mrs. Fentiman said it was time for Star to put her house in order.

“What we saw coming out of the Gotterson review was that one-eyed focus on earnings, where they didn’t really resort to their anti-money laundering policies,” he said.

The Queensland review found that Star was unfit to hold its two Queensland casino licenses

‘They didn’t take it seriously. They allowed barred New South Wales customers into Queensland casinos and lied to the regulator and their bank about the nature of China Union Pay transactions.

“Clearly, these are the shares of a company that is not eligible to have a license.”

The Queensland review found that Star was unfit to hold its two Queensland casino licences, initially casting doubt on the future of the company’s $3.6 billion Queen’s Wharf Brisbane casino and resort.

However, a last-minute change in casino laws paved the way for Star to open the development as planned the next year.

The new blow to Star Entertainment (casino pictured) comes after the gambling giant was also fined $100 million and had its casino license suspended after an investigation in New South Wales.

Star Entertainment is also involved in a civil action in Federal Court after the Australian Transaction Reporting and Analysis Center (AUSTRAC) brought a case against the ASX-listed gaming giant.

AUSTRAC alleges that Star allowed customers to move money through non-transparent and high-risk channels, claimed that it did not know where the money in those channels was coming from, and failed to consider its ongoing business relationships with higher-risk customers.

The regulator says Star Sydney has broken the law 1189 times, and Star Queensland has broken the law 325 times, since November 2016, with each individual breach carrying a maximum fine of between $18 million and $22.2 million.