Australian Financial Crimes Regulator Expands Probe into Star Entertainment Group

The Australian financial intelligence agency, AUSTRAC, is broadening its inquiry into Star Entertainment Group, intensifying the scrutiny on the casino operator already under investigation in New South Wales.

Star disclosed to shareholders that AUSTRAC’s preliminary probe, initiated in June 2021 and centered on their Sydney gaming venue, has now encompassed other branches within the Star conglomerate. Tasked with safeguarding the nation’s financial infrastructure from illicit activities, AUSTRAC plays a vital role as Australia’s financial crime regulator.

While stressing that no determination has been reached concerning potential enforcement actions or legal measures, AUSTRAC has sought supplementary data and records from Star. The corporation has committed to complete transparency and collaboration with the investigation.

This turn of events adds further complexity to the ongoing legal dispute Star is embroiled in with the Independent Liquor and Gaming Authority (ILGA), New South Wales’ gaming oversight body. Public proceedings are slated for March as part of ILGA’s assessment of Star’s Sydney casino permit, triggered by grave accusations of managerial shortcomings.

At the beginning of this week, the casino company Crown Resorts, which is facing difficulties, got a changed and flexible buyout proposal from a group headed by Blackstone, a private investment company. The Blackstone proposition is for 13.10 Australian dollars for each share, approximately equivalent to $9.55 in US currency. The board of directors at Crown is advising shareholders to agree to the proposal.