Embattled casino operator Star Entertainment Group’s Sydney casino license will remain suspended for at least another six months, according to the New South Wales Independent Casino Commission (NICC). This decision, announced after a review of submissions from both Star and the independent manager appointed by the NICC, comes as the company continues its remediation efforts.
The oversight will remain in place under the leadership of Nick Weeks, the NICC-appointed independent manager, until at least 30 September 2025. Star has also agreed that the manager should remain in place as the company continues its remediation efforts. In Star’s case, the NICC’s decision to extend the suspension reflects the ongoing concerns about the company’s ability to operate in line with the strict guidelines of the state. The oversight from Nick Weeks, who is acting as an independent manager, aims to ensure that the company addresses its compliance issues while being closely monitored.
NICC Chief Commissioner Philip Crawford said, “We welcome progress in The Star’s remediation efforts and are confident the company is moving in the right direction with its remediation plans. The next six months is a critical phase for The Star as it will need to show further progress with its remediation activities whilst also stabilising its finances.”
The suspension of Star’s Sydney casino licence came after the discovery of serious compliance failings in 2022. Investigations revealed that the casino had violated numerous regulations, including issues related to money laundering, fraud, and governance. These violations triggered a broad review of the company’s operations, leading to the suspension.
In a recent revelation, one of Star’s two major Hong Kong-based investors, Chow Tai Fook Enterprises (CTFE) came under scrutiny for its concealed relationship with criminal junket operator, Alvin Chau. The company has recently been at the center of a Queensland government investigation into Chow Tai Fook’s connections with Alvin Chau’s Suncity operation. The government’s suspicions were fueled by reports that Chow Tai Fook had not fully disclosed its relationship with Chau, particularly concerning a casino in Vietnam.
This came just weeks after Star securing a A$53 million emergency funding package by transferring its Brisbane casino operations. At the helm of this arrangement are Chow Tai Fook Enterprises and Far East Consortium, two major investors in Star Entertainment. This project is crucial for Star’s future, as it has struggled with declining revenues and increasing scrutiny from regulators. This agreement will see the Hong Kong partners paying A$53 million ($33.4 million) for Star’s stake in the Brisbane project, Far East said in a filing on the Hong Kong Exchange (HKEX). The first payment of A$35 million was to be made on 7 March.
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