Star Entertainment Faces Court, Financial Crisis Over Money Laundering Scandals

The casino operator is accused of enabling criminal activities while struggling to secure funds and sell assets to avoid collapse.

The Australian Securities and Investments Commission (ASIC) has brought civil proceedings against 10 former Star Entertainment executives and board members for failing to manage money laundering and criminal risks at its casinos.
Court allegations include handling large sums of cash in unconventional ways, such as using eskies and elastic bands, and obscuring CCTV cameras with blankets in private gaming salons linked to organized crime.
Star Entertainment is in talks with its Hong Kong partners, Chow Tai Fook Enterprises and Far East Consortium, to sell its 50% stake in Brisbane's Queen's Wharf casino, though no agreement has been reached due to valuation disputes.
The company's financial difficulties have intensified, with cash reserves dwindling to $79 million and mounting pressure from lenders to raise funds through asset sales or additional financing.
The trial is expected to scrutinize both the executives' direct actions and the board's alleged failure to oversee compliance, potentially resulting in fines and corporate bans for those involved.