Critics Call The Star Entertainment’s Problem Gambling Approach “Appalling”
The Star Entertainment Group Faces Renewed Criticism Over Problem Gambling Failures
The Star Entertainment Group continues to face significant regulatory challenges, with anonymous sources describing its approach to problem gambling as “appalling.” The embattled operator has struggled for years, with some Australian states deeming it unsuitable to hold a casino license.
The Star’s Ongoing Regulatory Troubles
Several years ago, The Star became embroiled in controversy after investigations uncovered instances of severe and systematic non-compliance with Australian casino regulations. These findings dealt a major blow to the business, forcing the company to implement a long-term remediation program. Although its leadership has changed multiple times, anonymous sources told The Sydney Morning Herald that the operator’s approach to problem gambling remains “appalling.”
According to the publication, the company’s compliance team has been reduced to just four members, while the group risk team has been slashed to only two employees. The investigation team has also been significantly downsized. This reduced workforce means that support officers may not always be able to identify customers at risk of gambling harm—potentially violating The Star’s regulatory commitments. An internal memo suggested that these cuts could render The Star unable to fulfill its obligations.
Adding to these concerns, The Star has a history of issues with excessive gamblers who lost more than they could afford, which has drawn further scrutiny. The company’s intense efforts to retain its customers have also raised eyebrows among regulators and industry observers.
The Star’s Recovery Efforts Continue to Falter
Last year, Bally’s Corporation and Mathieson took control of The Star after acquiring a majority stake in the business. While this move was expected to provide some relief, it appears that much work remains. Bally’s Chair, Soo Kim, previously commented on the company’s leadership issues, calling them “the greatest bit of mismanagement I have ever seen.”
As a result, The Star’s efforts to reclaim its licenses and complete its mandatory remediation plan are ongoing. The recent critiques of its lackluster problem gambling efforts come at an inconvenient time for an operator still struggling to turn things around.
In other news, The Star Entertainment Group recently published its unaudited results for the fourth quarter of the fiscal year. The highlight of the report was a significant narrowing of the company’s EBITDA loss. However, earlier this year, the Star Sydney property was hit with an eight-figure fine and ordered to invest an additional seven-figure sum to strengthen its responsible gambling systems.
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