High-rollers abandon The Star as it braces for second inquiry

The Star Entertainment Group, an Australian casino operator, is currently facing a significant challenge as high-rolling patrons have started to avoid its three casinos in Sydney, Gold Coast, and Brisbane. This trend comes as the company's former and current senior executives are set to appear before a public inquiry.

The New South Wales (NSW) Independent Liquor & Gaming Authority announced on March 15, 2023, that it would hold a new inquiry into the company's operations following allegations of money laundering, organized crime links, and other illegal activities at The Star's Sydney casino. This inquiry comes just over a year after the conclusion of a previous investigation that resulted in a AUD 100 million fine against the company for failing to prevent money laundering.

The latest inquiry will focus on the role of The Star's senior management in dealing with money laundering and other criminal activities at their casinos. Several high-profile executives have already resigned or been dismissed from their positions, including the CEO Matt Bekink and the head of VIP services, Jason O'Connor.

The departure of these high-rolling patrons is a significant concern for The Star Entertainment Group, as they represent a substantial portion of the casino's revenue. According to a report by The Sydney Morning Herald, high rollers accounted for around 20% of The Star's revenue before the first inquiry was announced. With these patrons staying away from the casinos, the company's financial performance is expected to be negatively impacted.

The Star Entertainment Group has denied any wrongdoing and has stated that it is fully cooperating with the NSW Independent Liquor & Gaming Authority's investigation. However, the ongoing inquiry and the departure of high-rolling patrons have raised concerns about the future of the company and its ability to recover from these allegations.

In conclusion, The Star Entertainment Group is currently facing a challenging period as high-rolling patrons have stopped visiting its casinos due to ongoing investigations into money laundering and other illegal activities. The company's former and current senior executives are set to appear before a public inquiry, which is expected to focus on their role in dealing with these issues. The departure of high rollers, who represent a significant portion of the casino's revenue, is a major concern for the company's financial performance.