The review conducted by the New South Wales (NSW) Independent Liquor and Gaming Authority (ILGA) into The Star has reached a conclusion, with senior counsel Naomi Sharp stating that the operator is not suitable to hold a license in the state. Sharp emphasized that there is a lack of evidence to support the operator’s suitability, and further reflection and investigation are required. During the review, it was revealed that compliance measures, including anti-money laundering (AML) and counter-terrorism financing (CTF), were not implemented at the appropriate times.
Insufficient Compliance Measures:
According to Naomi Sharp, the ILGA’s senior counsel, The Star failed to implement adequate compliance measures, particularly in relation to AML and CTF. Sharp argued that the evidence does not support the claim that The Star has a strong foundation for compliance in these areas. She stressed that significant improvements in AML and CTF frameworks were only initiated after the review began in August 2018. This suggests that The Star’s previous efforts to address compliance issues were inadequate and lacked a comprehensive approach.
Misleading the ILGA:
Sharp further highlighted that senior management at The Star repeatedly misled the ILGA during the review process. This lack of transparency and integrity raises serious concerns about the operator’s suitability for a license. Sharp emphasized that clear and compelling evidence would be required to establish The Star’s present suitability, which, in her view, does not exist. She pointed out a delinquent culture among senior management, a failure in risk management frameworks, and a lack of compliance culture regarding money laundering and counter-terrorism financing obligations.
Negative Changes and Resignations:
Since the review commenced, The Star and Star Entertainment have undergone significant negative changes. Numerous resignations, particularly from senior management, have taken place, indicating a disruption in leadership and organizational stability. Additionally, areas where misconduct occurred have been suspended or terminated. The closure of EEIS bank accounts and steps to de-register further reflect the ongoing challenges faced by the operator. These developments raise concerns about the overall management and governance of The Star.
Consequences and Implications:
The conclusion of the ILGA review has serious implications for The Star’s license status. The lack of evidence supporting the operator’s suitability, coupled with the revelations of misleading statements and compliance failures, suggests a significant breach of regulatory requirements. The ILGA may consider revoking or imposing strict conditions on The Star’s license to ensure the integrity of the gambling industry and protect consumers. The findings also highlight the need for a comprehensive overhaul of the operator’s compliance and governance practices to regain trust and demonstrate a commitment to responsible operations.
The NSW Liquor and Gaming Authority’s review into The Star has determined that the operator is not suitable to hold a license in the state. The findings reveal a lack of evidence supporting The Star’s present suitability, accompanied by compliance failures and misleading statements made by senior management. The negative changes within the organization, including resignations and the closure of bank accounts, further compound the concerns raised during the review. The implications of this conclusion may result in license revocation or the imposition of strict conditions to rectify deficiencies in compliance and governance. The Star must address these shortcomings and demonstrate a genuine commitment to responsible operations to regain public trust and maintain its reputation in the gambling industry.