Star Entertainment Kicked Off ASX Over Missing Financial Results

Posted on: September 3, 2024, 07:16h. 

Last updated on: September 3, 2024, 09:17h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.

Australia’s embattled Star Entertainment Group was suspended from the ASX, the country’s stock exchange, on Monday for failing to file its financial results. Star is the largest publicly traded casino operator in Australia.

Star Entertainment, Star Sydney, ASX, Australian stock market, Bell report
The Star Casino Sydney, above, is Star Entertainment’s flagship property, but the company is still not fit to hold its gaming license, per a regulator’s report published last week. (Image: Star Entertainment)

The company told shareholders on Friday that it would halt trading and publish its full-year results later in the day. That’s while it “considered the implications” of a damning report by New South Wales (NSW) regulators that found it was still unsuitable to hold a gaming license for its flagship Star Sydney property.

The report by the New South Wales Independent Casino Commission (NICC) concluded the operator had not sufficiently addressed the “governance and cultural concerns” highlighted in a 2022 inquiry that initially found it unfit for licensing.

It has only very recently turned its attention to dealing with challenges that should have been prioritized earlier,” NICC chief commissioner Philip Crawford said.

“It was unclear whether The Star could feasibly operate under less supervision, when it was exhibiting past behaviors with its license still suspended,” he added.

Secret VIP Room

The 2022 inquiry determined that The Star Sydney had failed to protect itself from being used by criminal gangs to launder money in private high-roller junket rooms.

Star allowed Macau-based junket operator Suncity to secretly operate an unbranded VIP room, referred to as “Salon 95.” This was despite Australian authorities having identified Suncity as having links to organized crime.

Salon 95 continued to operate even after then-Star CEO Matt Bekier told regulators his company had severed business links to Suncity.

The casino also allowed Chinese high rollers to withdraw a total of $900 million for gambling using China UnionPay (CUP) credit cards while disguising these transactions as “hotel expenses” to avoid breaching CUP’s no-gambling transaction rules. Star subsequently lied to CUP and the National Australia Bank in an effort to conceal the deceit.

Crown Passes Test

Star’s competitor, Crown Resorts, faced similar accusations of cultural shortcomings and was also found unsuitable for licensing in NSW following a 2021 inquiry. But last April, the NICC determined that the company had successfully addressed its failings.

Gaming at the Star Sydney, which holds the monopoly on slots in NSW, remains operational – for now. In a statement last week, the NICC said it was “contemplating [the report’s] findings, including four compliance breaches,” adding that it would respond in due course.

The report, published last Thursday, came just two days after Star opened its AU$3.8 billion (US$2.5 billion) Queens Wharf in Brisbane, Queensland. It also runs The Star Gold Coast in Queensland.