The Star Sydney Fined $7.2M for Breaches of Compliance

Australia’s casino industry is facing renewed scrutiny after regulators hit The Star Sydney with a multimillion-dollar penalty over a series of compliance failures around gambling practices and financial crime controls.

Casino Ordered to Invest Millions in Crime Detection Upgrades

The New South Wales Independent Casino Commission (NICC) slapped the operator with a total fine of AUD 10 million ($7.2 million) after a long-running investigation uncovered widespread breaches over a number of years. Authorities also ordered the casino to set aside another AUD 5 million ($3.6 million) to improve its systems to detect and prevent illicit financial activity, as reported by local media outlet The Advertiser. 

The regulator said the casino had allowed patrons to gamble for excessive periods on multiple occasions, sometimes for more than 36 hours straight. Such practices, it found, contravened responsible gaming rules designed to protect customers from harm. In some instances, however, the formally banned were able to re-enter the gaming floor, highlighting gaps in enforcement procedures.

Another big problem was how to turn loyalty rewards into cash. Investigators found nearly 1,900 cases of points being swapped that raised compliance concerns over a five-year period. Such practices could heighten the risk of misuse and undermine mechanisms of oversight, regulators said. 

Star Sydney Management Pushes Ahead with Compliance Overhaul

The majority of the penalty is due to failures in financial crime monitoring. The commission said the casino did not properly assess the risk profiles of some customers, such as those who may have been linked to money laundering or terrorism financing. These deficiencies were systemic in nature and pointed to deeper structural problems within the operator’s risk management structure. 

Many of the breaches occurred before recent reforms and leadership changes were introduced, officials said. While governance and technology upgrades had made progress, penalties for past misconduct were still needed and would be significant, the regulator said. The commission also stressed the importance of strict enforcement to ensure that casinos are not vulnerable to criminal exploitation. 

The Star Sydney license is still suspended, and operations are being run under the supervision of a manager appointed by the government. The company was given until mid-2027 to pay the fines in installments as it continues its efforts to overhaul its compliance systems. 

Company leaders responded that they are cooperating with authorities and investing in better monitoring tools. The management has said that many of the breaches are from past periods and is confident that the reforms underway will lead to better outcomes. The move comes as the operator is under growing pressure and facing legal and regulatory challenges arising from its past behavior.