Star Entertainment hit with second class action

Sydney, Australia - February 12, 2012: Big letters spelling The Star stand outside the entrance to the recently refurbished casino and entertainment complex. Formerly known as Star City Casino, it is attempting to revamp its image into that of a premier nightlife destination.

The Star Entertainment Group has been served with another class action in the Supreme Court of Victoria, with Maurice Blackburn serving the casino operator a statement of claim.

The claim alleges that in the period from 29 March 2016 to 16 March 2022, the Star had inadequate systems and processes for ensuring compliance with its obligations under anti-money laundering and counter-terrorism financing laws, and had inadequate systems and processes for ensuring compliance with Australian regulatory obligations.

This action follows damning revelations made in a joint investigation by news program 60 Minutes, The Sydney Morning Herald and The Age into Star on 10 October 2021 claiming the group had cultivated high-roller players who were allegedly associated with criminal or foreign-influence operations.

At the centre of the revelations is a 2018 audit report prepared by KPMG and presented to Star’s board’s audit committee which set out deficiencies in the Star’s systems and processes, noting, among other things, that there was “inadequate resourcing in place to operate the AML/CTF Program” and that its risk assessment system “does not consider terrorism financing as required by the AML/CTF Act”.

In response to those media reports, Star’s share price declined by about 25 per cent, wiping more than $1 billion from the company’s value.

Following the media revelations, an Independent Review of Star’s suitability to hold a casino licence in New South Wales was established under the Casino Control Act 1992 (NSW).

Adam Bell SC was appointed as the Commissioner to head the Review. The Bell Review uncovered further alleged misconduct and found Star “presently unsuitable to hold a casino licence” in NSW.

A further review was established in Queensland under the Casino Control Act (1982) with Robert Gotterson appointed to conduct the review. Following the release of the Gotterson Review, the Queensland Attorney-General announced that she had formed the view that Star was unsuitable to hold a casino licence in Queensland.

The class action claims that Star engaged in misleading and deceptive conduct; breached its continuous disclosure obligations; and conducted its affairs contrary to the interests of shareholders as a whole in the period.

The claim follows a similar securities class action filed by Slater & Gordon on 30 March 2022. 

The Star said in a statement it intends to defend the proceedings.


Featured image: iStock/kokkai

Latest News

  • Aviation
  • News

Velocity Frequent Flyer Bonus Points offer deadline looms

Aussies only have a few days left to take advantage of Virgin Australia’s Velocity Frequent Flyer Bonus Points offer, available on eligible Virgin Australia international long-haul flights (including Euro summer!) Aussies can maximise their leave, while maximising their points-earning potential by racking up to 20,000 bonus points on business return flights and 10,000 bonus Points […]

  • Attractions
  • News

Inspirational Australians lead events across NSW as Australia Day Ambassadors

Innovators, educators, musicians, healthcare professionals, elite athletes and environmental advocates are among 80 inspirational Australians who will take part in events across NSW as Australia Day Ambassadors on 26 January 2025. These outstanding citizens and local heroes are handpicked each year by the Australia Day Council of NSW for their exceptional contributions to the community […]

  • Cruise

Royal Caribbean’s latest summer getaway deals with up to 60 per cent off

Royal Caribbean has announced its latest itineraries for short summer getaways aboard Quantum of the Seas and Ovation of the Seas with various savings. Prices for these cruises start from $659 per person for a balcony stateroom. Travellers can enjoy up to 60 per cent off second guests, with up to $850 in instant savings and kids’ sailings from […]

  • Luxury
  • News
  • Tour Operators

APT reveals rebrand for Luxury Travel arm with new look and new monogram

APT Travel Group, Australia’s largest family-owned tour and cruise company, has unveiled a transformative rebrand for APT Luxury Travel, introducing a new era with a fresh, contemporary new look. At the heart of the rebrand is a newly designed luxury monogram, replacing the company’s old logo. APT said the elegant, bespoke symbol represents the legacy […]

  • Events

Brand USA Trade Expo returns to Auckland and Wellington

Brand USA, the destination marketing organisation for the US, has announced the return of its New Zealand Trade Expos in partnership with Air New Zealand and United Airlines. Registrations are now open and are free for travel agents. Last year’s event sold out quickly, so agents are encouraged to register early to secure their place […]