Despite all hopes of the Australian gambling and casino giant, the NSW Government refused to give the needed permission to Star Entertainment Group to boost the number of gaming machines in the operator’s gambling venue in Sydney. At the time it announced its decision, the State Government has unveiled the reason for the rejection, saying that the Star Sydney casino is currently facing an investigation over failures in its anti-money laundering policy.

As Casino Guardian previously reported, the ongoing probe into the venue’s operations came as a result of alleged links to some Asian junket operators, which allowed criminal infiltration into the casino, and the fact that the operator allowed the illegal use of China UnionPay (CUP) cards but at the same time masked the gambling transactions as hotel and accommodation payments.

All of these violations are serious enough and can bring serious measures against the Star Sydney, including the removal of the company’s casino operating licence following the completion of the inquiry and the report from the investigation at the end of August 2022.

The Star Sydney Currently Runs about 1.6% of the NSW Gaming Machines

If Star Entertainment’s request for an increase in the number of gaming machines was approved, this would have provided the Australian gambling giant with the chance to transfer gambling machine licences from region casinos and pubs in New South Wales that have been underperforming lately to its Star Sydney casino. According to experts, the scheme would have allowed the aforementioned underperforming venues the chance to either dispose of their operating licences or lease them to Star Entertainment Group, which, in its turn, would have used them to bring more gaming machines to its casino venue in Sydney.

The proposal of the gambling operator to the NSW Government also included a reduction of the overall number of gaming machines in the state by 500, as the Star Sydney made a pledge to discard 1 in 4 of the operating licences it managed to acquire. Currently, the 1,500 gaming machines owned and operated by The Star Sydney are about 1.6% of all the electronic gaming terminals (EGTs) in New South Wales. In comparison, Crown Melbourne features 2,628 machines, while Crown Perth currently holds 2,500 gaming machine licences. The Queen’s Wharf Brisbane venue of Star Entertainment, which is set to start operation by the end of 2022, also holds a licence for 2,500 gaming machines.

The gambling operator’s proposal faced some criticism, as the bid raised concerns that the aforementioned transfer of licences would cost both jobs and revenue to regional communities across the state of New South Wales, while also having an impact on local people’s social lives. The company’s proposal, however, also gained some support, as it was highlighted that its casino venue in Sydney would be able to offer better quality controls over gambling-related harm, gambling addiction and money laundering.