Casino Gaming Chips Create a New Controversy for Star Entertainment
Instead of just assisting with money laundering and fudging official documents, it turns out Star Entertainment Group has more dirty secrets to share.
The latest news surrounding this Australian gambling company is that they have admitted to breaking the law even more frequently than previously thought. Specifically, they've been caught selling gaming chips illegally at their Treasury Casino through credit card transactions. This admission stemmed from the revelation that they've been manipulating records to allow Chinese gamblers to use Chinese UnionPay (CUP) cards, which are strictly forbidden under Chinese law for gambling purposes.
In response to these accusations, Star Entertainment Group's management confessed to Queensland Attorney General Shannon Fentiman, resulting in a guilty plea on seven charges. This confession follows another admission by the company that they used fake invoices for hotel stays that were actually gambling chip purchases.
These unlawful actions didn't just occur once; they took place in two separate lengths of time. The first period was from June 2017 to December 2018, while the second occurred from March 2022 to April 2022. Shockingly, this second period spanned while an inquiry into their lawbreaking was ongoing.
When the Queensland investigation concluded last year, Star officials claimed they understood their wrongdoings and wouldn't repeat them. However, this was before the latest allegations surfaced.
The company already faces hefty fines totaling more than AU$200 million (US$213.28 million) in Queensland and New South Wales (NSW). Queensland officials are currently assessing how much more will be added to this total and will make their announcement on June 2nd. NSW also forbids using credit and debit cards for gaming transactions, so additional charges could be looming for Star. The situation is similar for Crown Resorts, who also engaged in these same unlawful practices at their own casinos - thus potentially facing extra fines as well.
While struggling with a tarnished reputation and negative publicity, Star is said to be seeking a buyer for its 50% share in the Sheraton Grand Mirage to cover the fines in NSW and Queensland. In contrast to this, the company announced a month ago that they were attempting to raise AU$800 million ($545 million) through a fundraising effort to assist with paying off their debts following a loss in the first half of the fiscal year. This loss also caused them to momentarily halt their dividend payments to shareholders.
Star's shares have plummeted in value, not only because of their own missteps but also due to a decline in the overall gaming market. In August 2018, their stock price stood at AU$4.96 (US$5.28). By February, this value had decreased significantly to AU$1.52 (US$1.62). As of press time, it continued its downward trend at a price of AU$1.42 (US$1.51).
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage