In a landmark move by the NSW Independent Casino Commission, the Star in Pyrmont has copped a massive $100 million fine and will have its gambling licence suspended from Friday, October 21.
This will be the first time in NSW history that a casino suspension has been enforced, and the largest fine issued to one in as long, given that the maximum fine for a casino in breach of codes of conduct was bumped up to $100 million from just $1 million a month ago.
So what happened?
The NICC last month released a scathing report, which found the Star was unfit to hold a casino licence after an inquiry identified a litany of compliance failures. These included a notorious gang-linked junket operator running an illicit cage at the casino, where a minimum of $900 million has been laundered. Independent Casino Commission chief commissioner Philip Crawford said in a statement that it's impossible to accurately estimate just how much money had been laundered through the private cage in the high-rollers Salon 95.
The commissioner referred to some $900 million laundered through China Credit Union Pay as a serious shortcoming, and that the harsh penalties were imposed because he was not satisfied with Star's reform plan, despite the Star cleaning house with the removal of many upper-management staff.
Nick Weeks of Wexted Advisors has been appointed as the Star's new manager for 90 days, a contract that may be extended. Weeks has vowed "compliance will be put ahead of profits" under his leadership, adding that "cultural change won't happen overnight." Whatever that means.