The Australian gambling establishment, Star Casino, experiences a halt in stock trading: potential risk of financial devastation.
The Australian casino operator, Star Casino, continues to be under scrutiny. Following a missed deadline to submit a financial report, the company was temporarily suspended from the stock exchange. Reports suggest that Star Casino has sought government assistance.
Largest Casino Operator Suspended on Stock Exchange
On August 30, the Australian stock exchange reportedly suspended trading of shares for Star Casino [Link in English], the largest listed casino operator in the country. However, there's no information on when trading might resume.
Star Casino missed its deadline for submitting its financial results for the current year, which included figures up to June 30. The reason for the delay remains unclear.
Potentially Damaging Report Published
Last Friday was a turbulent day for Star Casino – the company missed its deadline for submitting the required report and a damaging report was allegedly published.
In 2022, Australian authorities decided that Star Casino was unfit for a casino license due to misconduct, leading to the license being revoked. A renowned lawyer, Adam Bell, prepared a meticulous report on Star Casino's operations in 2022. On Friday, a second detailed report [Link in English], titled the Bell-Report, was said to have been published, with media describing it as damaging.
Severe Violations Discovered
The Bell-Report revealed four significant breaches since the 2022 investigation. Star Casino violated Australian gambling laws, which require players to take breaks after lengthy gaming sessions. However, Bell found violations of this rule at Star Casino's facilities. Additionally, a software glitch involving fraud was discovered, allegedly costing Star Casino approximately 1.9 million euros.
Bell also uncovered systematic and serious fraud by staff members, who allegedly falsified records to appear in compliance with protective measures for at-risk players. The report concluded that Star Casino had failed to address the culture of money laundering and fraud, and that the company had not made enough effort to address the issues uncovered in 2022.
The New South Wales Independent Casino Commission (NICC) expressed its concerns that it did not receive all the information it needed to ensure the company could manage an urgent business transformation.
Star Casino has been the subject of news headlines for years, with the most significant controversy coming in 2022, when significant flaws in its anti-money laundering measures were discovered. The company was fined 100 million AUD (around 61.4 million EUR) and had its casino license revoked.
Despite these issues, Star Casino operates several casinos, including ones in Sydney and Brisbane. It recently opened a new casino complex in Brisbane with estimated construction costs of 3.8 billion AUD (around 2.3 billion EUR).
The same day before the opening, Star Casino received a casino license from the state of Queensland for the new casino at Queen's Wharf. Surprisingly, given the company's unsuitability for a casino license, some Australian states have issued licenses, allowing casinos to continue operating.
Star Casino Seeks Government Aid
The stock exchange suspension is not the only challenge facing Star Casino. Reports indicate that the company has requested tax exemptions and additional aid [Link in English] from the governments of New South Wales and Queensland after the publication of the Bell Report. Simultaneously, Star Casino is negotiating repayment delays with its creditors.
Star Casino has faced financial challenges for several years. Factors such as government measures and a decline in revenue from premium gaming segments as well as legal issues and an increase in tax on poker machine revenues have added to the company's difficulties.
Last year, Star Casino laid off 500 employees to cut expenses. There are rumors of a potential takeover by Crown Resorts.
New South Wales Refuses Aid
Just now, it was announced that the New South Wales government will not grant the company any tax relief [Link in English]. The government argues that it is Star Casino's responsibility to maintain its operations. Moreover, officials are worried that tax relief from New South Wales would benefit Star Casinos in Queensland.
It's still unclear whether Star Casino will receive tax aid in Queensland. Elections for the state parliament are scheduled for October, which could put pressure on the government to save the new casino at Queen's Wharf.
The future of the gambling company remains uncertain, with its stock exchange suspension ongoing and tax relief a potential solution to prevent a financial collapse.
After the publication of the damaging Bell-Report, Star Casino has been a subject of extensive news coverage. Due to the report's findings of severe violations and systemic fraud, the company has sought government aid in the form of tax exemptions and additional financial assistance from both New South Wales and Queensland.
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