AUSTRALIA Trends and Developments Contributed by: Julian Hoskins, Daniel Lovecek, Bree Ryan and Alexander Norrish, Senet
Regulatory Scrutiny of the Casino Sector Remained Heightened Throughout 2025 and Into 2026 Australian casino operators continue to face intense regulatory scrutiny and a challenging operating envi- ronment following the implementation of significant regulatory reforms, including mandatory carded play on electronic gaming machines. Large-scale reme- diation programmes remain in-flight for the largest Australian-licensed casino operators, including under government-mandated supervision arrangements in some cases. The Star (Sydney) Following the August 2022 findings that The Star was unsuitable to be associated with the operation and management of The Star Casino, the New South Wales Casino regulator (NSW Independent Casino Commission (NICC)) appointed an independent man- ager to carry out a second independent inquiry into The Star in February 2024. In October 2024, the NICC advised that the licence will remain suspended until at least March 2025 (with independent supervision also to continue until at least that time), citing that a decision to revoke the licence would have serious economic impacts on staff and connected businesses and stakeholders. This sus- pension has now been extended until at least 31 March 2026, to enable the NICC to better assess the effectiveness of important remediation work that remains underway. Separately, the outcome of the AML/CFT regulator’s action against the Star Entertainment Group remains uncertain at the time of writing, with the Federal Court of Australia anticipated to hand down its find- ings shortly. The Australian Transaction Reports and Analysis Centre (“AUSTRAC”) is seeking a penalty of AUD400,000, while The Star has cited financial chal- lenges in support of a much lower penalty. Litigation initiated by the Australian Securities and Investments Commission (ASIC) against 11 former directors and officers of The Star remains unresolved for nine of the individuals involved. In a case that is being closely observed by the legal and director com- munity, the Federal Court of Australia has heard alle-
gations that the directors and officers failed to give sufficient focus to money laundering and criminal association risks, and to comply with their director duty obligations. Judgment has been reserved. Earlier in 2025, two of the defendants admitted to breach- ing their statutory obligations to discharge their duties with the requisite degree of care and diligence, and entered into settlement agreements with ASIC. Both were levied with significant fines and have been dis- qualified from managing corporations for agreed peri- ods. The Star (Queensland) In October 2022, The Star was found unsuitable to hold a casino licence or operate a casino in Queensland. Its licences in relation to The Treasury Brisbane and The Star Gold Coast were suspended on a deferred basis, a significant fine was imposed and a special manager (the same as appointed to oversee The Star Sydney) was appointed for 12 months. The special manager’s appointment and the deferral of the licence suspen- sion have been extended on multiple occasions, most recently to 30 September 2026, as The Star continues to implement and embed key deliverables under its remediation plan. The Star recently announced (in August 2025) that it has agreed binding arrangements with Chow Tai Fook Enterprises and Far East Consortium for the disposal of its interest in the much-vaunted Brisbane Queen’s Wharf development, in light of financial challenges faced by the group. The Star will, however, consoli- date its interest in the Gold Coast casino property. SkyCity Adelaide On 7 June 2024, SkyCity, the Adelaide-based casino, was ordered by the Federal Court of Australia to pay AUD67 million in civil penalty proceedings brought by AUSTRAC for breaches of AML/CFT legislation. The court also ordered SkyCity to pay AUSTRAC’s costs of AUD3 million. Following the conclusion of the AUSTRAC proceed- ings, the South Australian regulator directed that its review into SkyCity’s suitability to operate the SkyCity Adelaide Casino would recommence. The review was completed in August 2025 and found SkyCity to be suitable to hold South Australia’s only casino licence.
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