Starling Insights Editorial Board
Following a major money laundering scandal, Australian casino operator Star Entertainment Group has announced a $1.26 billion loss for the first half of the 2023 financial year.
Star blamed some of its poor financial performance on increasingly restrictive operational requirements. A report released to the Australian Securities Exchange reflected $1.3 billion in one-off costs, $350 million in fines, and other expenses related to ongoing reviews and new systems requirements. “Recent regulatory changes have increased compliance costs,” the report read.
After investigators found rampant money laundering, fraud, and criminal activity in its casinos, Star is working to regain suitability to hold licenses in two Australian States — New South Wales and Queensland. And the casino operator is likely to face more fines in the near future, as the Australian Transaction Reports and Analysis Centre (AUSTRAC) has commenced civil penalty proceedings against it over breaches of anti-money laundering laws.
Late last year, Starling Insights published "The Costs of Misconduct," a Deeper Dive supplement to our 2022 Compendium. The report discusses the massive fines and societal impact stemming from misconduct, and whether, going forward, they can be treated even tacitly as “costs of doing business.”
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