Star Sydney fined $10M over risk failures

The New South Wales casino regulator has hit Star Entertainment Group (ASX:SGR) with a combined $10 million fine following systemic risk management and financial crime failures at its flagship Sydney venue.

Along with the financial penalties, the NSW Independent Casino Commission has issued an enforceable undertaking requiring the embattled operator to set aside an additional $5 million to upgrade technology surrounding its financial crime risk operations.

The sanctions follow a liquor and gaming NSW investigation that uncovered thousands of regulatory breaches occurring between December 2018 and September 2025.

While many of these infractions were self-reported or identified through Star’s ongoing remediation programme, they underscore deep historical vulnerabilities to criminal infiltration and gambling harm.

NICC Chief Commissioner Philip Crawford stated that while the breaches of the Casino Control Act 1992 were deeply concerning, many occurred before the implementation of recent systemic upgrades, such as carded play.

"Imposing these fines along with the enforceable undertaking reiterates the seriousness with which the NICC considers any breaches that leave customers vulnerable," Crawford added.

The Star Sydney’s casino licence remains suspended indefinitely, and operations continue under a NICC-appointed manager.

Star is facing mounting pressure, having recently swung to a sequential third-quarter loss driven by seasonal weakness and declining table games revenue.

At the time of reporting, Star Entertainment Group’s share price was $0.098.