Star Entertainment receives AU$100m fine in Queensland

Star Entertainment Group Ltd. has been hit with a second AU$100m fine (approximately $66.7m) in so many months, with one of Australia’s most prominent gambling companies having to pay a substantial amount tied to a number of issues that have put the company’s reputation at stake. One of the issues stated by the regulator in press coverage is that Star in Queensland has sought to entertain gamblers who were allegedly banned in other states.

The fine is part of a double-whammy regulatory move against the Group with Queensland Attorney General Shannon Fentiman confirming that Star Entertainment will have its two casino licenses in the state suspended unless significant steps towards improvement are made.

The move covers two properties that the operator currently runs in the state and that it will need to show a willingness to put back on the straight and narrow in order to gain the regulators’ trust. This is easier said than done, as Fentiman expects Star to show some serious commitment by overhauling its managerial structure at first and then proceeding with a number of other changes applies to its operations.

Fentiman minced no words describing the situation at the Group’s operations and said that she was "appalled" at the scale of the offenses discovered. Essentially, Fentiman said, Star was happy to welcome players that were not welcome in other states.

She added that excluded and suspicious gamblers were invited to the properties and offered extensivebonus inducements to keep playing. Many of these persons targeted through promotional materials were also banned in other states, Fentiman explained. The announcement that Queensland is not fit to hold a license, though, is not new as it goes back to October and comes as a result of an extensive probe into the property.

Meanwhile, this is the second substantial fine that Star Entertainment will have to pay. Previously, New South Wales fined Star Entertainment AU$100m, the maximum applicable penalty under new Australian gambling laws. NSW discovered similar breaches at Star properties in the state.

However, the local government and authorities cited Star’s targeting of vulnerable gamblers as the reason why the penalty was issued. Star’s Brisbane and Gold Coast properties in Queensland, though, will have to demonstrate that they are fit to hold a license through December 1, 2023, when the licenses will be suspended for a 90-day period unless changes are made.

Authorities in Australia are hopeful that casino operators can clean their act, as they employ too many people, but watchdogs would not hesitate to act in cases where infringements have been committed. AUSTRAC, Australia’s financial regulator, recently commenced civil penalty proceedings against The Star and its entities.

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