Embattled casino operator Star Entertainment has earned a reprieve after the Queensland government threatened to suspend its state licences.
The Star was told last year it had 12 months to “get their house in order” after a damning 2022 review.
The operator was found to be unfit to hold its casino licences in Brisbane and the Gold Coast, copping a $100 million fine from the state government.
Queensland Attorney-General Yvette D'Ath said Star had a year to come up with a remediation plan or both its licences would be suspended for three months from December 1.
Ms D'Ath on Friday said Star's plan featuring more than 100 initiatives had been approved and the potential 90-day suspension date had been deferred to May 31, 2024.
The new Star board has budgeted about $200 million to implement the strategy.
“Assessment of progress will inform future decisions about applying the suspensions,” a Queensland government statement said.
A 12-month extension has also been given to special manager Nicholas Weeks, who was installed to oversee the operations overhaul at the Gold Coast and Brisbane casinos.
Mr Weeks, manager assisting Terri Hamilton and their team will monitor the plan's implementation while Star “proves its commitment and ability to remediate and return to suitability”.
The Queensland government said failure to comply with the plan would make Star liable to further disciplinary action, including fines of up to $5 million.
The review last year found Star neglected its anti-money laundering and responsible gaming duties and deliberately misled the regulator in pursuit of profit.
The state government has since cracked down on casino integrity, ushering in all 12 recommendations of the landmark 2022 review into Star's operations by Robert Gotterson KC.
“The Star's remediation and return to suitability to hold a casino licence will not be simple or quick and requires cultural change across the organisation,” Ms D'Ath said.
“Today's announcement strikes the right balance between making sure The Star operates lawfully, ethically and in a way that enhances integrity, while also prioritising public confidence and local jobs.
“The government remains committed to casino reform to address the significant failings identified in the Gotterson review and the findings of the many inquiries into casino operations across the country.”
Star's new $3.6 billion Queens Wharf casino in Brisbane is expected to open in the first half of 2024.
NSW's gaming regulator suspended Star's Sydney licence in October and slapped a record $100 million fine on the company after an inquiry identified numerous compliance failures and found the casino had allowed money laundering to take place inside private rooms.
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