Sydney’s The Star casino has been fined a whopping $100m following a damning inquiry into its “confronting” and “shocking” conduct.
Adam Bell SC last month handed down a report that exposed alleged money laundering, organised crime links and fraud at The Star, with the NSW Independent Casino Commission (NICC) subsequently finding it unit to hold a casino licence within the state.
The $100m fine was issued by the NICC on Monday, the maximum penalty that can be given following tough casino regulation reforms that were introduced by the state government earlier this year.
The massive penalty coincided with Robbie Cooke’s first day as the The Star’s new chief executive.
NICC chief commissioner Philip Crawford confirmed on Monday that The Star’s casino licence had been suspended and Nicholas Weeks appointed as the casino’s manager.
Mr Weeks will hold a casino licence, meaning the The Star can still operate.
“The NICC has regard to the fact that had it determined to cancel the licence, thousands of Star employees would have lost their jobs overnight,” Mr Crawford said.
“At this point the commission did not consider this to be in the public interest.
“The appointment of the manager means that The Star casino will remain open and all staff will remain employed. It does not mean that the NICC thinks that The Star is suitable for a casino licence.
“At this point, the NICC considers a possibility that The Star could remediate its business to becoming suitable to hold a casino licence.”
The suspension of the casino’s licence will be effective as of 9am this Friday.
When addressing the report back in September, Mr Crawford said senior management and senior executives took “deliberate” steps to mislead their bank, their board of directors and the regulator.
“The report is, quite frankly, shocking. It provides evidence of an extensive compliance breakdown in key areas of The Star‘s business,” Mr Crawford said.
“It’s quite confronting, the steps they went to, to hide things and hide really bad behaviour.
“A repeating theme throughout the report seemed to be asking not whether something they were looking at doing was appropriate but how they could do it.”
The Star Entertainment Group (TSEG) accepted the findings of the report and said it had developed a “comprehensive” remediation plan.
“TSEG and The Star Sydney accept the findings of the Bell Report, including the finding of unsuitability,” Star executive chairman Ben Heap said in a statement issued on behalf of the board.
“TSEG and The Star Sydney also acknowledge the gravity of the conduct which is raised in the Bell report. TSEG has taken significant and urgent remedial steps, including increased risk, compliance, and security staff, approval of upgrades to surveillance technology as well as permanently exiting junkets and closing the Marquee nightclub.
“We intend to do whatever is necessary, in consultation with NICC, to restore The Star Sydney to suitability.”
NSW Premier Dominic Perrottet called The Star “absolutely horrendous” following the report’s release.
“There is no place for anybody in any organisation, particularly casinos, to not be complying with the regulations in place,” he said.
NSW Hospitality and Racing Minister Kevin Anderson said in a statement at the time the findings in the Bell report were “shocking”.
“Their lack of respect for compliance and regulation is breathtaking,” he said.
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