Star Entertainment Group has again been fined. Fearing the loss of their licensing, Star self-reported the offences. Eleven charges brought a $140,000 penalty. Charges were related to buying casino chips with a credit card and advertising to excluded patrons. The offences were in relation to two casinos in Queensland, Australia, Treasury Casino and The Star Gold Coast.
Australian Star Entertainment Group has been seen in court again. The gavel was brought down on them with a hefty $140,000 fine.
©Wesley Tingey/Unsplash
The company, Star Entertainment QLD Limited (Star) was fined AU$ 100 million last December (2022). Star was told they had twelve months to “get their house in order”. The Queensland Attorney General said they would otherwise have their casino operating licenses suspended. So, Star self-audited and reported these latest offences themselves. Doing so reduced their sentencing, and they received the minimum possible fines.
Following Star’s reporting of the offences, the Office of Liquor and Gaming Regulation (OLGR) investigated. The OLGR administers the laws and policies that govern Queensland’s casinos, lotteries, and gaming. Changes last year to the state’s Casino Control Act increased fines and a special monitoring agent was placed into Star’s Queensland casinos. Each of the state’s four casinos endure several on-site audits each week. Star owns and operates two of Queensland’s four casinos.
The Chips Aren’t Down with Credit Cards
Seven of the charges brought against Star were in relation to accepting wagers bought by credit card. It is illegal in all of Australia to use credit cards when gambling, or cash advances from credit accounts. Between 2017 and 2022, Star’s Brisbane and Gold Coast casinos lacked sufficient controls to prevent this on their EFTPOS machines. More than $170,000 in wagers from credit cards were received during this time. One patron was able to purchase AU$ 20,000 worth of chips using their credit card. This sum is considered enough to put the average Australian at significant financial risk.
Gambling Advertising Rules Getting Trickier
The other four charges related to promotional material being sent to excluded patrons. Two had self-excluded and were speculated to be problem gamblers. The presiding Magistrate voiced concern that prior warnings had been given about this issue. OLGR advised that the casino staff knew that the advertising recipients were excluded – or should have known.
Advertising promotions to entice return clients are strictly regulated in Australia. A fine line must be danced so that reckless gambling behaviour is not encouraged. Direct advertising that includes incentives may soon be on the chopping block in many regions of Australia. This is an area that Star will need to increasingly scrutinise as legislation evolves.
It All Came Out Well in the Wash
It was finally found that on all accounts, it was staff oversight rather than intentional violation by the casino operators. Star reports that training and procedures have already been improved in the area. Interestingly, the casino operator said that the credit betting malfeasance was discovered because of the internal audit they launched around the wrongful promotions.
Star Entertainment Group was potentially facing maximum penalties of over a million dollars for the offences. Magistrate Shane Elliott said, “It’s not a situation where there is systemic problems with the casino or flagrant breaches of the act (Queensland’s Casino Control Act)”. He also stated, “I accept that there is a possibility that the contraventions would not have been picked up but for that self-report”.
A New Day Coming for Star Brisbane
Come April 2024, the Brisbane Treasury Casino is morphing into its upgraded persona “The Star Brisbane”. It will move into its new quarters in the multi-billion dollar Queen’s Wharf Resort complex. With this Grand Opening on the line, Star Entertainment Group are crossing all their t’s and dotting all their i’s. The last thing the casino operator wants is its gambling licenses suspended on the eve of its Grand Opening. This may not be the last seen of Star self-reporting offences as it, “gets its house in order”.
