The Australian financial watchdog, AUSTRAC, is broadening its current inquiry into the Star Entertainment Group, encompassing supplementary subsidiaries within the corporation.
In a disclosure to the Australian Stock Exchange, Star Entertainment confirmed the expanded probe. This follows a prior notification on June 7, 2021, where Star Entertainment verified AUSTRAC’s preliminary investigation into its Sydney gaming establishment. As Australia’s financial intelligence unit, AUSTRAC plays a vital role in protecting the financial system from illicit exploitation and combating significant organized crime.
Star Entertainment indicated that AUSTRAC has not yet ascertained what regulatory measures, if any, it may pursue. This encompasses the potential for legal proceedings. The firm stressed its dedication to fully collaborating with AUSTRAC’s inquiry and furnishing all sought-after data and records.
This situation arises during a difficult period for Star Entertainment, as it also confronts legal actions from the Independent Liquor and Gaming Authority (ILGA), New South Wales’ gaming overseer. ILGA is presently readying for public hearings in March, arising from accusations of governance shortcomings. These hearings are a component of ILGA’s comprehensive assessment of the Sydney casino permit held by Star Entertainment.
At the beginning of the week, the struggling casino company Crown Resorts obtained a modified, non-obligatory acquisition proposal from a group headed by Blackstone, the private equity powerhouse, and its partners. The enhanced proposition suggests purchasing all remaining Crown shares for A$13.10 (US$9.55) per share in cash. The board of directors at Crown has collectively endorsed the proposal to its stakeholders.