Star Entertainment Faces Fines for Aiding Patrons in Illegal Gambling with Credit Cards
The gambling giant, Star Entertainment, is in trouble yet again in Australia. While this fine is smaller than previous penalties, it could be due to the substantial fines the company has already incurred.
On Wednesday, Star admitted to enabling gamblers to bypass legislation prohibiting the use of credit cards for purchases related to gambling. According to court testimonies, the casino operator assisted some customers in obtaining casino credit by making payments for non-gambling services that were only documented on paper.
This is similar to how Crown Resorts facilitated Chinese gamblers by making use of China Union Pay (CUP) cards. In such cases, Crown fabricated receipts for hospitality expenses, which unofficially stood as casino credit.
Multiple Fine Evasion
Appearing at the Brisbane Magistrates Court in Queensland, Star accepted fault for the transgression. The company was charged with seven counts of violating state regulations that permit gamblers to purchase casino chips using credit cards. These infractions transpired from 2017 to 2022, according to the court records.
While Star did not disclose the exact amount of money swindled through this scheme, it acknowledged that one individual received AU$20,000 (US$13,112), and another received AU$15,000 (US$9,834). In contrast, Crown blatantly disregarded laws with hundreds of thousands of dollars being transacted.
Besides these misconducts, Star also violated guidelines surrounding the distribution of marketing materials. It was held guilty of dispatching ads to four people placed on the no-contact list in February the year prior.
These violations were discovered during the restructuring process Star underwent following numerous lapses, including breaching anti-money laundering regulations and responsible gambling protocols. It was during this rearrangement that Star noticed the issues related to credit card transactions. Star contacted the betting regulatory authority in Queensland to report the gambling failures, leading to the discovery of credit card rule infringement.
Star could have faced penalties up to AU$1 million (US$655,600) for the 11 infractions it was charged with. These fines would have complemented the AU$200 million (US$131 million) it had paid in Queensland and New South Wales. This time, Star will only be required to pay AU$140,000 (US$91,784). It's uncertain if the company will choose to perform layoffs to compensate for the cost.
Deflecting the Blame
Star's defense attorney maintained that the company's negligence was not willful but rather an outcome of inattentive human error. This claim was aimed at mitigating the severity of Star's wrongdoing.
When deciding the appropriate fine for Star, the court considered several factors such as the prompt revelation of the misdeeds, the voluntary acknowledgement, and the thorough self-investigation the company conducted.
Currently, Star is supervised by a "designated special manager" for a year in Queensland. This appointment was made following the company's conviction for flouting several legal rules in Queensland and New South Wales.
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Source: www.casino.org
