Controversies
In 2021 a joint report by the Sydney Morning Herald the Age, and the television program 60 Minutes, found that Star management had been warned that its anti-money laundering controls were inadequate and that between 2014 and 2021 Star had attempted to recruit high rollers who were allegedly linked to criminal or foreign-influence activities. In response to the report Star stated that it was "concerned by a number of assertions within the media reports that it considers misleading." And also stated that it would take steps to address the allegations with Australian authorities.[18][19] Following the report shareholders began forming a class action lawsuit against Star and inquiries were launched by Queensland's, Western Australia's, Victoria's, and New South Wales's state gaming regulators.[20][21]
On 13 September 2022 the NSW Independent Casino Commission (NICC) published a report finding The Star unsuitable to hold its Sydney casino license because of its conduct relating to money laundering risks. It had 14 days to respond.[22] The company was fined A$100m ($62m) as a result.[23] Star's gambling license was suspended and operations were placed under a new manager Nicholas Weeks.[24]
In late 2022, the Queensland Government also found Star unsuitable to hold its dual state casino licences.[25] Former Court of Appeal Judge Robert Gotterson conducted an independent review of the matter.[26] Queensland Attorney-General Shannon Fentiman found Star misled regulators and failed in its anti-money laundering duties.[25] The company has been served a statement of claim for a securities class action in the Supreme Court of Victoria. The class action alleges[27] that Star breached disclosure obligations and acted against the best interests of the shareholders. Star was fined $100 million on 9 December 2022.[28] Casino licences for the Treasury Brisbane and the Star Gold Coast will be suspended for 90 days, with this action deferred until December 1, 2023. The deferment gives Star an opportunity to remediate its management and operations.[28] In addition to these issues with their properties in Queensland, in
In April 2024, the chair for The Star Star Entertainment Group Limited David Foster resigned from his post less than a week after giving evidence to the ongoing inquiry into the license suitability of the company's The Star Sydney property. Foster reportedly found his efforts increasingly frustrated by office politics and, in particular, the relationship between the company's Chief Executive Officer, Robbie Cooke, and the independent manager appointed to help implement an official state-mandated remediation plan, Nicholas Weeks.[30] Foster's departure came after he told the official inquiry his company was currently unsuitable to operate a casino in New South Wales. There was ‘not a scenario’ in which it would be able to run the property unsupervised. He was additionally quizzed over a series of ‘heat of the moment’ texts with Cooke in which the pair allegedly discussed getting rid of Weeks by having shareholders launch a class-action lawsuit against the government-appointed manager.[31]
As of January 2025, AUSTRAC is currently calculating a fine for breaching counterterrorism and anti-money laundering laws. The company has deposited $150 million for the fine, and it is reported that shareholder Bruce Mathieson is refusing to pour more money into the company until a fine is agreed upon.
On 10 February 2025, ASIC is proceeding to sue the former board of the company in the High Court of Australia for failing to keep track of money laundering. It already settled with and withdrew CFO Harry Theodore on misleading the National Australia Bank on its ATMs being used to funnel the money, with the penalty yet to be calculated.[32]
