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ABC News
ABC News
National

Star Casino set to be fined $100 million after damning report into its operations

Sydney's Star Casino is expected to be fined $100 million by the NSW Independent Casino Commission (NICC) after a damning report into its operations.

Last month, The Star Entertainment Group accepted the findings of an inquiry headed by Adam Bell SC, which found it unsuitable to hold a licence for its Sydney casino.

The inquiry heard allegations of money laundering, organised crime links and fraud at the Pyrmont-based casino.

In releasing its report, NICC chief commissioner Philip Crawford said while the majority of the casino's staff were doing the right thing, systemic governance and risk and cultural failures had been found.

"The report is, quite frankly, shocking. It provides evidence of an extensive compliance breakdown in key areas of The Star's business," Mr Crawford said.

"Not only were huge amounts of money disguised by the casino as hotel expenses, but vast sums of cash evaded anti-money laundering protocols in numerous situations, most alarmingly through Salon 95 — the secret room with a second cash cage."

Mr Crawford said it was also discovered that senior staff had concealed activities and there were instances where patrons were exposed to "gambling harms".

"The Star offered free alcohol to VIPs as an inducement to gamble and allowed vulnerable patrons to gamble continuously for more than 24 hours at a time, without intervention," he said.

"These personal accounts are jarring and illustrate how unrestrained gambling can go from entertainment to exploitation."

Thirty recommendations were made in the report to fix the issues identified.

In accepting the findings, Star Entertainment said it had taken "significant and urgent remedial steps", including ceasing junkets and upgrading surveillance — and has developed a comprehensive multi-year plan.  

It is understood the NICC will release details on Monday.

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