Australia’s Star casino to pay $62M record fine over money laundering

Star Entertainment Group, the Australian gambling giant, has reportedly been charged with a A$100 million ($62 million) fine for failing to cease all money laundering activities at its Sydney casino.

The group's license to run the casino has been revoked as well.

The Star has vowed to do everything possible to earn back both the public's trust and its license.

After accusations of extensive criminal activity, Australian casino operators are now under intense pressure to overhaul their gambling operations.

In response to a devastating probe in New South Wales (NSW) earlier this year, the major fines were made public.

Apparently, the Star had a flippant approach to administration and occasionally attempted to hide its traces, allowing organized crime as well as money laundering to enter their Sydney casino.

The regulatory chief Philip Crawford stated that Star’s institutional arrogance has been staggering.

The maximum fine that can be imposed was disclosed on Monday, but the NSW Independent Casino Commission decided against completely suspending Star's license in order to safeguard thousands of jobs.

The casino will continue to run under the terms of the suspension, with management chosen by the regulator.

The casino has already pledged to increase the number of security guards, enhance surveillance, stop the high-risk overseas VIP junkets, and change its management.

Executives have already resigned because of the incident, including former Chief executive Matt Bekier.

The penalties were disclosed on the first day of his replacement by Robbie Cooke.

Crawford stated that the company's cultural flaws would take time to be reformed, but it shows signs of transformation under Cooke's leadership.

The Star began a trade standstill that will last until Wednesday.

Earlier this month, following a similar investigation in Queensland, the Star was also determined to be unable to manage its three casinos there.

Meanwhile, the nation's largest entertainment and gaming company, Crown Resorts was penalized $80 million by Victorian gambling officials earlier this year for its mishaps to stop criminal activity.

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