Published
CasinoLegal & RegulatoryIndustry

Star Entertainment Group faces class-action lawsuits amid money laundering allegations

The Star Entertainment Group’s week has gone from bad to worse as it now faces two potential class-action lawsuits from firms Slater and Gordon and Maurice Blackburn.

StarMoneyLaundering

Following reports by Nine Group’s Sydney Morning Herald, the Age and 60 Minutes, the Australian casino company was confronted with revelations regarding alleged failures to counter money laundering and other illicit financing operations.

Between 2014 and 2021, the media outlets claim Star catered to high-roller gamblers with associations to criminal or foreign-influence outfits, as well as reportedly disguising gambling activity as hotel expenses.

Both law firms have since begun preparations for class-action lawsuits against the Australian casino company on behalf of its investors, with both opening preliminary investigations into the merits of such action.

“On the basis of Slater and Gordon’s investigations to date, we consider there may be a proper basis to allege that Star has been in breach of its continuous disclosure obligations, and further that it has made misleading or deceptive statements to the ASX,” stated Slater and Gordon.

Maurice Blackburn likewise issued a statement, in which it broke down the contents of its prospective class-action lawsuit, saying: “The proposed class action will allege that Star engaged in misleading and deceptive conduct; breached its continuous disclosure obligations; and conducted its affairs contrary to the interests of members as a whole in the period.”

Both companies are calling for anyone who was issued shares in the alleged time period to come forward.

This news comes hot on the heels of an announcement by New South Wales’ Independent Liquor & Gaming Authority (ILGA) in which the regulator revealed public hearings will be held as part of The Star Casino’s licence review.

Star has largely escaped the scrutiny facing its rival Crown Resorts, but these recent developments look set to plunge it into a similar regulatory quagmire.


Casino News Sponsor
Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Executive Profiles
MGM Resorts Japan
BetConstruct
Hann Casino Resort
Bloomberry Resorts Corporation
Sightline Payments

Global Gaming Awards Asia: What to expect in 2023

Gambling Insider looks ahead to the Global Gaming Awards Asi...

The power of the rebrand

With the help of industry experts, Gambling Insider Editor T...

Evolution Europe CEO Gionata La Torre: The Italian job

Evolution Group’s new CEO Europe, sits down with Gambling...

Big Question: How can slots innovate from here?

Simon Hammon, CEO of Relax Gaming, Erkki Nikunen, Partner &...

Read Magazine