The Star Casino has come under intense scrutiny from AUSTRAC, Australia’s financial watchdog, as it faces allegations of serious breaches in anti-money laundering regulations. Recent court hearings revealed that The Star was inclined to provide substantial gambling credit to a known money launderer and engaged in deceptive practices to facilitate overseas bank transfers from unidentified sources. Barrister Daniel Tynan described this conduct as a series of “innumerable contraventions” of the law, highlighting the casino’s dealings with 117 high-risk customers.
The casino acknowledged that 70 of these individuals, including junket funders and operators, were particularly associated with high money laundering risks. Tynan elaborated in court that such customers could easily gamble, reap returns, and “wash” the money repeatedly. Notably, Suncity’s Alvin Chau was extended credit for up to $266.67 million, despite ongoing media reports linking him to international crime syndicates. He was involved in almost 3,700 junket programmes at The Star’s Sydney location, yielding approximately $12.6 billion in turnover. The casino ceased its business relationship with Chau only after his arrest in Macau on money laundering charges.
Furthermore, another customer was granted nearly $167 million in credit even though The Star was aware of his alleged involvement in money laundering as far back as 2014. The casino also allowed high-risk transactions from over 1,200 customers whose identities were obscured during fund transfers. Employees at a Macau-based subsidiary allegedly falsified documentation to allow clients to remit funds from the Bank of China directly to the casino, adopting misleading claims about the nature of these transactions.
Compounding these issues, The Star reported approximately $990 million in deposits made via hotel debit cards, which enabled gamblers to transfer funds without necessitating an Australian bank intermediary. These cards permitted individuals in jurisdictions like China, where gambling is restricted, to disguise gambling transactions as hotel-related expenses. Tynan pointed out that customers frequently received advances on their funds before the standard waiting period of 24-48 hours, allowing for cash withdrawals that could be used without traceability.
As a result of these violations, AUSTRAC is pursuing $400 million in penalties, though The Star claims it can only afford $100 million without the risk of insolvency. The casino recently received a $300 million rescue package from US gaming firm Bally’s Corporation. The unfolding legal proceedings are set to continue, with significant implications for the casino’s operations and compliance practices.