The Star Entertainment Group announced that it has formalized the previously announced aspects of the arrangements agreed in principle with the NSW Treasurer, Daniel Mookhey, securing the company’s jobs commitment and cashless trial.

In line with the initial agreement from August 11, 2023, The Star entered into a Jobs Guarantee Agreement with the state of New South Wales and the United Workers Union. As a result, the casino giant agreed to maintain a minimum headcount and certain ratios of full-time, part-time and casual employees at its The Star Sydney casino.

The job guarantee is valid until June 30, 2030, the company added. It also mentioned that the commitment is still subject to certain permitted adjustments in specific circumstances.

As per the newest additions to the Casino Control Act 1992 (NSW), The Star risks penalties if it fails to comply with the jobs commitment it agreed to.

In the meantime, The Star also officialized a formal trial of cashless and carded play at its The Star Sydney property. This trial comes as New South Wales seeks to modernize its gambling industry and prevent gambling-related fraud.

Cashless gaming and carded play will be trialed at NSW casinos from August 2024, allowing the state to see whether they have the intended effect.

The Star Sydney, for example, seeks to allow its guests to play cashless on 51 poker machines and 8 gaming tables within its Sovereign Room.

The Star’s group chief executive officer and managing director, Robbie Cooke, commented on the formalization of the aforementioned agreements labeling the engagement with the NSW Government as very constructive. He added that The Star is happy to have reached these arrangements and be able to provide security to its team in Sydney.

According to Cooke, The Star is bullish on reacquiring NSW’s trust in the wake of the recent regulatory failings.

As we continue to focus on earning back the trust of the Page 2 of 2 community and implementing the reforms required to restore The Star to suitability, we are also committed to the continuation of our role as a valuable contributor to the NSW economy.

Robbie Cooke, group CEO & MD, The Star

Three weeks ago, The Star also introduced new regulations to prevent excessive gambling. Effective as of January 31, the new rules include a mandatory 15-minute break every three hours and a limit of 28 hours of gaming per week. Players will also be unable to play more than 12 hours a day.

The introduction of the new rules followed an AUD 100 million fine in Queensland.

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This mostly came with no strings attached from the government, other than preparing the necessary paperwork and making sure that certain standards for responsible gambling and underage gambling have been observed.

Poker Machines Now Need a RG Officer to Tend to Customers

Yet, a wave of regulatory changes across the state will now expect pubs and other venues that have at least 20 poker machines to a more rigorous standard whereby they also employ Responsible Gambling Officers whose purpose will be to determine whether a patron is at risk of harm.

Venues that have more than 20 poker machines will only employ a single such person, but if the poker machines exceed 100, then additional staff will have to take over. There is a grace period still, as venues will be given time to adapt, and not least – the measure is not going to come into effect until July 1, 2024.

Once it does, businesses will have further time to make sure that they are compliant with the law. “The introduction of Responsible Gambling Officers is the next important step in supporting people who may be experiencing gambling harm,” has been vastly welcomed by responsible gambling groups and advocates, including Clubs NSW, an industry body, that said it was very much for the proposed changes.

The group’s CEO, Rebecca Riant, said that she was very much for minimizing harm and that the 1,200 members of the trade group were prepared to comply with the measures as necessary to ensure that patrons are protected and out of harm’s way.

The measure does put a financial burden on businesses that will now have to train and find qualified individuals as the nation, and New South Wales in particular, is responding to a growing need for a more scrupulous approach towards responsible gambling.

New South Wales Toughens Measures on Gambling

More measures are forthcoming. Some, such as the removal of gambling inducements from physical signs outside of pubs and clubs, have also come into effect, but others, including the restriction of AU$500 ($330) input into a poker machine are to take effect later.

Australia is also flirting with the introduction of a mandatory cashless payment option, which is so far stuck between different trials, and which has caused rather more indignation than other measures. Clubs have spoken out against the measure arguing that the government equates their clientele to criminals, and raised data standards.

Clubs have come under a lot of scrutiny recently, with some penalized for having ATMs next to their gaming rooms.

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Liquor & Gaming NSW announced that the operator of an inner Sydney venue was found guilty of a gambling-related violation. According to the authority’s report, the licensee in question had placed an Automatic Teller Machine (ATM) in an ATM room attached to its gaming room.

For reference, the Gaming Machines Regulation 2019 specifies that ATMs must be located in completely separate rooms. Vbar, the venue in question, however, sported an ATM in an adjacent room, violating NSW’s regulations. In addition, the property sported a large text reading ATM that was displayed across the door to the room.

The rules concerning the placement of ATMs align with NSW’s efforts to minimize gambling harm. The proximity of ATMs leads to risks of repeated withdrawals, exacerbating problem players’ harm. As a result, inspectors continue to monitor the placement of ATMs, targeting a variety of factors. These include the availability of credit from ATMs on the premises of a gambling venue, the visibility of internal gaming-related signage outside the venue and hotel layouts that compel visitors to pass through a gaming room when going to another area.

In addition, inspectors continue to make sure that gaming rooms include self-exclusion messaging, comply with Gaming Plans of Management and do not let minors in.

Vbar Was Penalized

Because of Vbar’s violation, the property’s licensee was ordered to pay the prosecutor’s costs in the amount of AUD 5,500 by the Local Court. According to Liquor & Gaming NSW’s executive director of regulatory operations, Jane Lin, the position of the ATM in Vbar was a “clear breach” of the Gaming Machines Regulation 2019.

Lin explained:

ATMs must be located in a part of the venue completely separate to gaming rooms or any other part of a venue where gaming machines are located, even if the internal design or fit-out of the room acts to screen the ATM.

Jane Lin, exec director of regulatory operations, Liquor & Gaming NSW

Lin added that having easy access to withdrawals can make it easier for players to lose track of how much they are spending. Because of that, ATMs should be located further away from gaming machines, encouraging players to have a break.

Lin concluded that her team will not tolerate violations of fundamental gambling harm minimization measures.

Any operators who attempt to circumvent the legislation will be met with a strong enforcement response.

Jane Lin, exec director of regulatory operations, Liquor & Gaming NSW

The regulator’s claim was supported by the Magistrate, which agreed that Vbar violated NSW’s regulations.

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Liquor & Gaming New South Wales announced it would substantially expand its cashless gambling trial, expressing hope for the program’s success amid rising interest from clubs and other venues. This update bodes well for the Australian province, which suffers from record problem gambling rates and still struggles to regulate unscrupulous businesses.

The Government Will Collect Valuable Data

Cashless gaming has been one of the hot topics of the gambling industry in the Australian state for nearly a year. Many believe that the statewide implementation of the technology will help to prevent gambling-related fraud while protecting at-risk consumers from harm. Liquor & Gaming NSW has also remained optimistic, organizing the trial to test cashless gaming’s real-world viability.

July saw the government appoint Michael Foggo, a former liquor, gaming, and racing commissioner, to lead a panel of 16 industry representatives and reform advocates who will oversee the trial. This group will report its findings back to the government by November 2024. Premier Chris Minns has pledged transparency, stating that the panel’s findings will be publicly available.

The trial will involve collecting data from the machines, analyzing the effects on patrons, and will evaluate the impact on club and hotel employees. This in-depth review will also assess infrastructure requirements and potential costs, forming a comprehensive picture of cashless gaming. If successful, the government pledged to prioritize implementing the measure.

Cashless Gaming Enjoys Substantial Industry Support

Gambling Minister David Harris lauded the trial’s expansion, highlighting that it encompassed nine times more machines than the initial proposal. He was optimistic regarding the rising number of clubs showing interest in participating, hoping this fact reflected a genuine commitment by the entertainment industry to tackle gambling harm and money laundering.

The industry is clearly behind us as we undergo these landmark gaming reforms as part of our commitment to addressing money laundering and gambling harm in NSW.

David Harris, NSW Gambling Minister

The regional government’s unwavering commitment is a welcome sign for NSW residents who have lost AUD 8.07 billion ($5.42 billion) to poker machines in the last financial year, representing a worrisome 23.7% increase from 2018-19. These statistics underscore the urgent need for decisive action within the state and place substantial hope in the success of the cashless gambling trials.

Despite facing frequent criticisms for their lack of decisiveness, the NSW government has made substantial progress in the last few months. The state’s new ban on external gambling signs has been among its most successful initiatives, as a recent probe uncovered that nearly 99% of the inspected pubs and clubs complied with the new regulations. One can only hope that cashless gaming will enjoy the same results.

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Star Entertainment Group has six more months to regain its license in New South Wales, lest it risk closing. As reported by The Sydney Morning Herald, the NSW regulator is not content with Star’s ability to do business without supervision.

Star’s business has been having regulatory trouble for some time now. Its casino license was suspended by the NSW Independent Casino Commission (NICC) last year after a probe that uncovered multiple AML and CTF failings.

An independent manager has been appointed to oversee Star’s Sydney property ever since, ensuring that the company implements its remediation plan. However, the NICC does not believe that Star has yet reached a point where its license suspension can be lifted since it does not trust the company to run its casino without supervision.

The NICC spokesperson confirmed that The Star should prove its capability to run its business independently within six months or risk losing its license for real.

This comes just after the NSW and Queensland regulators agreed to extend the terms of the independent managers appointed to oversee Star’s business in two states. Back then, Star also pointed out that this would be the final extension of the manager’s term.

NICC Says Manager Weeks Has Been the Main Driver of Remediation

The NICC was very unhappy at the fact that much of Star’s remediation measures had been spearheaded by independent manager Nicholas Weeks, instead of driven by the casino company’s own decisions.

In addition, the regulator has doubts that the NSW remediation plan would be enough to reinstate Star Entertainment’s license. The NICC also expressed its concerns that the operator’s profit-driven culture might return once the independent manager concludes his term, considering that a significant portion of the senior executive team has remained the same.

However, a Star Sydney spokesperson argued that the company is firmly committed to implementing the remediation plan with the “utmost rigor and discipline.” The Star team said that it is pleased to have had the opportunity to work with manager Weeks for so long and is glad that his term was extended three times.

In any case, Star will be fighting an uphill battle if it is to retain its license. The company must make sure that its business is in order and show initiative when implementing remediation measures.

In other news, Star recently renegotiated its duty rates in NSW.

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The Liquor & Gaming New South Wales (L&GNSW), which is responsible for managing the “regulatory framework for the liquor, gaming, wagering, casino, and registered clubs sectors in NSW,” has initiated the third and last stage of the compliance program aimed at the forbidden display of gaming signage in the state. 

Two New Venue Operators Issued Statutory Directions

The body that undertakes compliance and enforcement activities and offers policy advice to the government has recently undertaken a series of enforcement measures on two venues, the Royal Hotel at Granville and Stardust Hotel at Cabramatta, concerning the illegal display of gambling-related signage. 

L&GNSW inspectors discovered that the Royal Hotel at Granville made use of cartoon imagery advertising the hotel’s restaurant, Mr Choy’s Wok, which was similar to the one used in the electronic gaming machine called Choy’s Kingdom. 

Accordingly, they were issued a statutory direction according to section 75 of the Liquor Act, which asks for all signage and material using the imagery to be removed or changed. 

While the licensee complied with this direction, they also decided to apply for a review from the Independent Liquor & Gaming Authority.

The same inspectors also came across a digital archway around the external entrance of the gaming room belonging to Stardust Hotel at Cabramatta.

The respective archway features animations showing a panda holding and chewing on a plant that resembled those found in the Panda Magic electronic gaming machine. 

Stardust Hotel was issued a statutory direction asking it to stop using the digital archway, with successful results.

Escalated Enforcement Action Starting December 1

As part of the newly instilled “zero-tolerance approach” and ban on these forms of advertising that went into effect in September, L&GNSW inspectors have already attended more than 1,200 venues spread across 53 local government areas in NSW. 

The list included 19 regional areas representative of more than 55% of the state’s venues entitled to have gaming machines.

The inspectors discovered a 99% compliance rate for the venues’ external signage tied to gaming. As explained by the minister for gaming and racing, David Harris, by now, all operators “should have a full understanding of the requirements, and all illegal signage should be removed.”

He further explained that the removal of the banned signage is only one of the critical steps toward fulfilling their commitment to the important gambling reform aimed at lowering gambling harm and tackling money laundering. 

Harris reiterated that operators who breach the Gaming Machines Act and fail to remove these signs will face a maximum penalty of $11,000 per offense. 

At the same time, venues that do not comply with any statutory direction issued under the Liquor Act will also face an offense with an established maximum penalty of $11,000. 

Even more, both of these offenses can be used as grounds for disciplinary action.

Minister Harris said L&GNSW “will no longer accept any reason for a delay in the removal of prohibited signage” or the setup of new signage trying to highlight the existence of electronic gaming machines.

Moreover, he warned that all of these attempts to use symbols, animations, or characters popularly connected to gambling franchises, poker machines, or gambling circumventing the ban “will be met with an escalated enforcement response.” 

The prohibition refers to both external and internal signage that can be easily noticed while standing outside a venue.

In June, the regulator reiterated the ban on credit card ATMs at brick-and-mortar gambling venues in an effort to restrict problem or at-risk gambling.

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New South Wales (NSW) and Queensland regulators appointed special managers to oversee the company’s operations after the scandals surrounding its risk management failures and unethical behaviors. The beleaguered operator has recorded substantial progress in remedying its deficiencies but must still convince authorities it is ready to resume control.

Both Regions Expect Swift Progress

In ASX filings on Friday, Star disclosed the extension of Nicholas Weeks’ term as Manager of The Star Sydney by nearly six months, lasting until 30 June 2024. Similar to NSW, the position of the Special Manager for The Star Gold Coast and Treasury Brisbane casinos in Queensland has been extended by 12 months to 8 December 2024. 

These extensions aim to demonstrate that Star is capable of the necessary remedial actions to regain suitability and resume gaming activities as per its casino license provisions in NSW and Queensland. This change necessitates Star to demonstrate its adherence to the ongoing remediation plans and regain suitability by summer 2024.

Queensland’s decision to extend its special management follows a recent decision by Attorney General Yvette D’Ath to alter the effective date of a 90-day casino license suspension from 1 December 2023 to 31 May 2024. Meanwhile, the NSW Independent Casino Commission (NICC) clarified that its extension will likely mark the final continuation of the Manager’s term, with the option to conclude the tenure earlier if deemed appropriate.

The Operator Faces Growing Pressures

Star Entertainment managing director and CEO Robbie Cooke commented on the recent developments, expressing satisfaction with the Remediation Plan’s approval in Queensland. He stressed the need for unwavering commitment, accountability, and diligence to implement the measures successfully and prove that Star Entertainment can operate without additional supervision.

Despite the operator’s steady progress towards compliance, it faces substantial financial issues. Recent casino duty rate increases threaten to undermine the company’s long road to profitability as its FY 2022/23 results reported an unpleasant full-year loss of $1.6 million. However, all revenue-related policies must wait until the company regains regulatory compliance.

We need to regain the trust and confidence of all our stakeholders and communities and continue to have an unwavering focus on transformation.

Robbie Cooke, Star Entertainment managing director

While Star Entertainment has recorded steady progress with its remedial measures, many industry experts express skepticism about whether the operator can salvage its influence and reputation. Even if the company regains the trust of regulators, it must still struggle with mounting losses and macroeconomic pressures, meaning a return to profitability may take years.

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Crown Resorts is renegotiating its 1 billion-dollar (AUD) tax guarantee agreement with the New South Wales government. In 2013, the operator promised to pay at least $1 billion in license fees and taxes  over the 15 years after the opening of its Sydney property.

However, the casino didn’t quite pick up as Crown Resorts had hoped. Amid the pandemic and the severe regulatory hurdles experienced by Crown, the casino continued to struggle, eventually forcing the company to shut down two VIP gaming floors.  The decline of visitation from affluent Chinese tourists and Crown Resorts’ losses didn’t help either.

This caused concerns over Crown’s tax obligations. Under the initial agreement, Crown and The Star were expected to pay three times higher taxes in the first three years since the opening of Crown Sydney than those paid by The Star in the year prior to Crown Sydney’s opening. In addition, Crown is still supposed to contribute at least a billion in gaming taxes over the first 15 years of its property’s operation.  

Because of its ongoing financial hurdles, Crown is currently renegotiating its tax obligations with the NSW government. This was confirmed by NSW Treasurer Daniel Mookhey, who was unable to reveal more at this time.

Premier Minns Says Crown Should Honor Its Deal

Premier Chris Minns is unamused, however, saying that Crown secured the casino site for next to nothing thanks to the $1 billion tax deal. Because of that, he slammed Crown Resorts for seeking further relief. Minns pointed out that the company’s demand is “really an insult to all Sydneysiders.” He said that if Crown cannot honor its deal with the people of New South Wales, it should hand the land back.

Despite his pessimism about Crown’s demands, Minns said that his team was obliged to hold negotiations about tax scales and tax arrangements to the state. However, he noted that people “shouldn’t jump the gun” and presume that these negotiations will necessarily lead to an actual net reduction in tax take for casinos in the stake.

Minns added that he does not intend to have public negotiations with casino companies. He added that any potential changes to tax rates will be announced publicly.

In other news, Star Entertainment recently struck a tax relief deal in NSW, reaching a concession on casino duty rates with the government after criticizing the duties earlier this year.

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Australia’s largest gambling company, Tabcorp, has received a fine of almost $10,000 (converted to USD from AUD 15,000) for its recent violation of New South Wales’ advertising rules. According to Liquor & Gaming NSW, the gambling company induced visitors of its website to gamble.

The advert was visible to anyone who visited Tabcorp’s website, regardless if they were a registered customer or not. Tabcorp later justified the promotion as the result of an “internal failing.”

Under New South Wales’ rules on gambling advertisement, any offers that encourage people to gamble are strictly forbidden. Overall, NSW prohibits companies from inducing players to play, open accounts, keep their account open or consent to receive promotions. As a result, the Australian gambling giant will have to pay the aforementioned fine.

Speaking on the matter, Liquor & Gaming NSW’s executive director of regulatory operations, Jane Jin, reprimanded Tabcorp, saying that an operator of its size should know better and have more robust internal controls to prevent the publication of such gambling inducements.

Jin noted that gambling operators should instead offer gambling promotions to existing betting account holders who have made the decision to play and have consented to receiving such inducements. She concluded:

However, wagering operators can’t advertise or promote inducements such as offers of increased odds or bonus bets to entice people to open a betting account or to gamble more frequently.

Jane Jin, exec director of regulatory operations, Liquor & Gaming NSW

Tabcorp Was Also Fined in Victoria

Several days ago, Tabcorp also found itself in hot water in the state of Victoria. In that case, the Victorian Gambling and Casino Control Commission filed charges against eight venues, as well as Tabcorp, saying that they’ve allowed minors to gamble.

Tabcorp, among other entities, was accused of not having sufficient monitoring controls and social responsibility protocols. As a result of this serious violation, the company faced a fine of up to AUD 698,997 ($450,000).

VGCCC’s chief executive officer, Annette Kimmitt, emphasized that allowing minors to gamble is one of the most serious offenses a gambling company can commit. She said:

All gambling venues must ensure they do not accept a bet from a minor and must ask for identification from anyone they suspect could be underage.

Annette Kimmitt, CEO, VGCCC

Earlier this month, the Australian Taxation Office agreed to return $53 million to Tabcorp, following the resolution of a tax dispute.

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Liquor & Gaming New South Wales announced that it will be responsible for overseeing the upcoming cashless gaming technology trial in the Australian state and invited industry bodies to participate. Hosted by The Independent Panel on Gaming Reform, the trial will explore the potential of cashless systems to change gambling in NSW.

According to the announcement the panel has now issued invitations for venues and technology providers to apply to participate in the trial.

Applicants should meet certain standards and must be committed to protecting the market from harm and fraud, the regulator explained.

Applicants should meet the minimum requirements set by the Independent Panel to take part in the cashless gaming trial, including harm minimization protections, anti-money laundering protections, and data security and privacy protections, and specific requirements for venues.

Liquor & Gaming NSW statement

Companies have until October 13 to apply for the trial.

The Trial Will Help NSW See If Cashless Gaming Is Worth Investing In

Cashless gaming has been one of the hot topics of the gambling industry in the Australian state for several months now. Many believe that the statewide implementation of the technology will help to prevent gambling-related fraud while protecting at-risk consumers from harm.

However, certain parties, including local industry groups, remain skeptical of the technology and its potential, with many arguing that it may prove to be nothing more than an expensive risk.

In any case, Liquor & Gaming NSW wants to give cashless gaming a chance and see if the technology can usher in a new era of compliance. The trials will help the authority assess how the solutions operate in practice.

An independent researcher will evaluate the effectiveness of cashless gaming by leveraging customized research methodologies.

Liquor & Gaming NSW hopes that the research will lead to a change in player behaviors, mitigating harm and preventing illicit activities.

Cashless gaming trial runs will run for three or more months, allowing the regulator and independent researcher to gather enough data.

A few days ago, the NSW government allocated $100 million to combat gambling harm as the state seeks to reduce the problem gambling rates. The investment came from the redirection of fines imposed on Star Casino.

The investment is notably a part of the Minns Labor Government Budget and reflects a dedication to preventing gambling harm and gambling-related crime.

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