Star Entertainment is once again facing financial difficulties just three months after Bally’s Corporation rescued it from administration. AUSTRAC, the Australian financial watchdog, is seeking a penalty of AU$400m ($259m) for what it describes as “manifest failures” by the casino group. Australia’s Federal Court claims that senior executives at Star failed to adequately implement anti-money laundering (AML) and counter-terrorism-financing measures at its casinos in Brisbane, Sydney, and Queensland.
Although AUSTRAC deems the AU$400m fine appropriate, Star argues that it can only afford to pay AU$100m ($66m), which is significantly less than the penalty demanded. Star asserts that the lower amount is the most it can pay without risking liquidation. Despite Bally’s $300m rescue package in April, which temporarily eased financial pressures, Star is once again in dire straits as the Federal Court hearing continues.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com