- Comes amid allegations of money laundering, fraud and organised crime links
- The Crown group has also undergone similar inquires in NSW, Victoria and WA
An NSW inquiry in The Star Entertainment Group (ASX; SGR) has found that is not suitable to operate a casino in the state.
The Star is currently the second largest casino in the country after Crown Melbourne. The latter is also the largest in the Southern Hemisphere.
Led by Adam Bell SC, the inquiry was held earlier in the year and reviewing allegations into organised crime links, money laundering and fraud at The Star.
“A number of extremely serious governance, risk management and cultural failures of The Star Entities occurred over, and indeed before the commencement of, the relevant period,” Mr Bell wrote.
“Management repeatedly chose to run risks rather than avoid or contain them. Too often the question which was asked was “how can we do this?” rather than “should we be doing this?”
The news comes as over the past few years much attention has been brought towards Crown and their licences across their Perth, Melbourne and the recently opened Sydney Casinos.
Crown did review a merger proposal from The Star Entertainment Group, which was rejected after Crown was acquired by the Blackstone Group.
Mr Bell has recommended self-reporting requirements to be tightened, and in-house lawyers at The Star to undergo “independent and specific training on legal professional privilege and when it can and cannot be claimed”.
Mr Bell also said cash should be banned for gambling at the casino.
The Star Entertainment Group is currently under a trading halt.
More to come…
