Star Entertainment gets six-month casino licence reprieve

Star Entertainment Group has received a six-month reprieve in its operations at Australian casinos, as the Queensland government has decided to postpone the suspension of The Star Gold Coast’s casino license until September 30. This development provides the beleaguered operator with an opportunity to demonstrate substantial progress in addressing the critical issues identified during a comprehensive 2022 inquiry.

### The Inquiry: Uncovering Serious Governance Failings

The initial inquiry raised alarming concerns regarding governance, compliance, and anti-money laundering (AML) practices within Star’s operational framework. Following these revelations, the company has been functioning under stringent remediation conditions mandated by regulatory bodies.

### Government Oversight and Timeline

Queensland Attorney General Deb Frecklington announced the license deferral, emphasizing that this extension should not be interpreted as leniency from the government. Frecklington noted that the operator has displayed “positive progress” in aligning with governmental expectations, and maintaining the casino’s operational status is anticipated to facilitate ongoing improvements.

As part of this extension, special manager Nick Weeks, who was appointed in late 2022 to supervise the reform process, will continue in his role until September 30. Weeks is responsible for overseeing both The Star Gold Coast and The Star Sydney, ensuring compliance with regulatory milestones outlined by the government.

### Challenges in New South Wales

In contrast, the situation in New South Wales (NSW) presents a more challenging landscape. The NSW Independent Casino Commission has determined that The Star Sydney’s casino license will remain suspended “at least” until September. Investigations revealed similar compliance breaches, including the misuse of China UnionPay cards—prohibited from gambling transactions in Australia—used to withdraw funds on casino premises. Furthermore, there were alarming instances where players banned from gambling in other regions were actively encouraged to participate in gaming activities at Star venues.

These serious findings have led regulatory bodies in both Queensland and NSW to implement special oversight measures and demand clear, actionable paths toward reform.

### The Path Forward: Government Stance

Attorney General Frecklington made it unequivocally clear that while the license deferral permits continued operations, the government is prepared to take decisive action should the company fail to fulfill its obligations. “This is not a free pass,” she cautioned, highlighting the gravity of the situation.

### Industry Response and Commitment to Reform

In response to these developments, Star Entertainment’s CEO, Steve McCann, expressed gratitude to the government for their support and reaffirmed the company’s dedication to restoring trust. He emphasized that Star is focused on successfully implementing its remediation plan to regain its standing as a suitable license holder.

### Conclusion: Navigating Uncertain Waters

The unfolding circumstances highlight the precarious nature of the gambling industry amid increasing regulatory scrutiny. For operators like Star Entertainment, the imperative to adapt and comply with evolving standards cannot be overstated. As the industry grapples with issues of accountability, transparency, and customer safety, the outcomes of such remediation efforts will serve as a critical benchmark for future governance in Australian casinos.

This situation not only underscores the need for robust compliance frameworks but also the importance of maintaining public trust to ensure the long-term viability of the gaming sector. The spotlight is now firmly on Star Entertainment as it navigates this pivotal period of reform.