Star Entertainment Group’s flagship Sydney casino, The Star Sydney, has six months to return to suitability or its doors will close, according to comments from the state’s casino regulator.
Two weeks after the NSW Independent Casino Commission (NICC) extended the term of the Special Manager overseeing Star’s efforts to return to suitability for another six months from January 2024 until 30 June 2024, a spokesperson for the regulator told the Australian Financial Review (AFR) that The Star Sydney would no longer operate unless it meets its new deadline.
“The NICC is not satisfied The Star has reached a point where the licence suspension can be lifted and it can run its casino without the supervision of the manager,” the NICC spokesperson told AFR. “If they can’t prove they are capable of operating with a conditional licence over the next six months, the manager will be retired, and the doors will close.”
As reported by IAG, Star was last year found unsuitable to hold its NSW casino license after an inquiry uncovered serious failings around its anti-money laundering (AML) and counter terrorism financing (CTF) controls.
However, the company was given the opportunity to return to suitability under the supervision of a Special Manager, whose term was originally due to expire in January.
Star, meanwhile, has found itself battling the state government over proposed tax hikes and awaits the outcome of civil proceedings currently underway by AML watchdog AUSTRAC.
It recently launched another round of fundraising after revealing a net loss of AU$2.44 billion (US$1.57 billion) for the year ended 30 June 2023, largely as a result of regulatory impairments.
