Casino Star Sydney Addresses Errors and Misdeeds
In a significant turn of events, Star Entertainment's Sydney Casino has found itself embroiled in money laundering operations, with Chinese nationals reportedly involved. The casino's long-standing reputation for entertaining clients has taken a hit, as regulatory authorities uncover serious lapses in anti-money laundering (AML) controls.
The New South Wales Independent Casino Commission's findings in October 2022 deemed Star Entertainment "unsuitable" to hold its Sydney license due to these AML breaches, resulting in a hefty AU$100 million fine. This ruling indicates that the casino failed to prevent or detect money laundering activities within its premises.
The fallout from these failures has been far-reaching. Regulatory authorities suspended the casino’s license at times and applied immense financial and operational pressure on Star Entertainment. Ongoing court cases and a potential AU$400 million penalty from AUSTRAC (Australia’s financial intelligence agency) are just some of the consequences faced by the casino.
In response, Star Entertainment has sought major financial rescue deals, including a $195 million strategic investment from Bally’s, to stay operational.
To address the illegal actions that occurred, the casino's management team has been replaced, and several board members have left. Additional monitoring staff has been added to ensure all operations of the casino, particularly those of junkets, comply with rules. The casino has also increased monitoring to ensure all future staff and executives play by the rules.
One of the key players in the money laundering scheme was Sunset, a junket operator based in Macau, which was allowed to have a money-for-chips desk at the casino. The casino's staff and managers were found to be complicit in this scheme, disguising a total of $582 million as hotel expenses.
The rectification process for these mistakes is expected to take a couple of years. The casino is taking steps to amend its wrongdoings, with the hope of restoring public trust and regaining its licence. It's a long road ahead, but with the new measures in place, the casino aims to play by the rules moving forward.
Despite the casino's historical reputation for casino-culture and casino-games at its Sydney location, the establishment is currently navigating a challenging time due to involvement in money laundering operations. Amidst the revelation that a junket operator, Sunset from Macau, had a money-for-chips desk, it was discovered the casino's management and staff were complicit in disguising $582 million as hotel expenses, part of the casino-and-gambling activities.
