High-rollers abandon The Star as it braces for second inquiry

The Star Entertainment Group, an Australian casino operator, is currently facing a significant challenge as high-rolling patrons have started to avoid its three casinos in Sydney, Gold Coast, and Brisbane. This trend comes as the company's former and current senior executives are set to appear before a public inquiry.

The New South Wales (NSW) Independent Liquor & Gaming Authority announced on March 15, 2023, that it would hold a new inquiry into the Star Entertainment Group's suitability to hold a casino license due to allegations of money laundering, VIP junket operations, and other regulatory breaches. This inquiry follows a previous investigation that began in 2020, which led to the suspension of the casino's VIP gaming license in February 2023.

The NSW regulator's decision to launch a new investigation was based on new information that came to light during the initial probe. The new allegations include claims that the casino allowed high rollers to gamble beyond their means, failed to properly monitor transactions, and had inadequate anti-money laundering procedures.

As a result of these allegations and the ongoing investigations, high rollers have reportedly started to shun the Star Entertainment Group's casinos. According to industry sources, these VIP players have shifted their business to competitors such as Crown Resorts and The Star's sister property, Treasury Brisbane.

The impact on the Star Entertainment Group's revenue has been significant. In its most recent financial report, the company reported a 40% decline in revenue from its VIP business compared to the same period last year. This decline is expected to continue until the investigations are completed and the casino's reputation is restored.

The Star Entertainment Group has responded by implementing new measures to address the regulatory concerns. These include strengthening its anti-money laundering procedures, enhancing its customer due diligence processes, and appointing an independent expert to oversee its VIP operations.

Despite these efforts, the outcome of the inquiry remains uncertain. If the Star Entertainment Group is found to have breached regulatory requirements, it could face penalties such as fines or even the loss of its casino license. In the meantime, the company will continue to work closely with the NSW regulator to address any concerns and rebuild trust with its high roller clientele.

In summary, the Star Entertainment Group is facing a significant challenge as high rollers avoid its casinos due to ongoing investigations into money laundering and regulatory breaches. The company's former and current senior executives are set to appear before a public inquiry, which could result in penalties if wrongdoing is found. The impact on revenue has been significant, with a 40% decline reported in VIP business. The company is taking steps to address regulatory concerns and rebuild trust with its high roller clientele.