Back in trouble
Less than three months after Bally’s Corporation saved Star Entertainment from administration, the Australian gaming giant is back in financial jeopardy.
“manifest failures” by the casino group
News emerged Thursday that Aussie financial watchdog AUSTRAC was seeking a penalty of AU$400m ($259m) for what it says were “manifest failures” by the casino group.
According to reports, Australia’s Federal Court on Wednesday alleged senior Star execs failed to properly impose adequate anti-money laundering (AML) and counter-terrorism-financing measures at its Brisbane, Sydney, and Queensland casinos.
AUSTRAC wants Star to pony up $259m for its multiple failures. Star, however, says it just doesn’t have that much money.
Dire straits
AUSTRAC attorney Simon White SC said the AU$400m fine was “appropriate” rather than “oppressive.” Star, though, used the first day of the court hearing to express a very different, and desperate, position.
According to AAP News, Star appealed to Justice Cameron Moore for the much lower fine of AU$100m ($66m).
Star’s plaintive plea, which came on the back of admitting its past failures of AML-linked processes, was that it could essentially only afford to pay US$66m. That’s US$193m shy of AUSTRAC’s penalty. In Aussie dollars, AU$300m short.
Star stated that its offer was the most it could pay “without being pushed into liquidation.”
False sense of security?
The embattled Aussie casino giant has been counting the pennies for some time now, despite Bally’s saving the firm from financial collapse in April via a $300m rescue package. While the Bally’s Hail Mary deal gave Star space to breathe, the wolves are now back at its door.
The Federal Court hearing resumes Thursday.
