Critics Call The Star Entertainment’s Problem Gambling Approach “Appalling”

The Star Entertainment Group’s regulatory hurdles continue as sources dubbed its problem gambling approach as “appalling.” The embattled operator has been struggling for years, with some Australian states deeming it unsuitable to hold a license.

The Star Finds Itself in Hot Water

A few years ago, The Star got into trouble as investigations uncovered instances of severe and systematic non-compliance with the Australian casino rules. The findings dealt a significant blow to the business, forcing it to implement a long-running remediation program. While the company’s leadership has changed a few times, anonymous sources told The Sydney Morning Herald that the operator’s approach to problem gambling is still “appalling.”

In its publication, The Sydney Morning Herald said that anonymous sources told it that The Star’s compliance team has been reduced to only 4 members, while the group risk team was slashed to only two. At the same time, the investigation team has also been significantly reduced.

The lower headcount means that support officers cannot always identify all customers at risk of gambling harm, which could be a violation of The Star’s regulatory commitments. An earlier memo suggested that this reduced workforce means that The Star might no longer be able to fulfill its regulatory commitments.

To make matters worse, The Star has had previous issues with excessive gamblers, who lost more than they could afford, leading to further scrutiny. The company’s intense efforts to retain its customers have also raised eyebrows.

The Company Is Still Not Out of Trouble

Last year, Bally’s Corporation and Mathieson took control of The Star after securing a majority stake in the business. While the move was expected to finally provide the company with some relief, it seems that there is still more that needs to be done.

The company’s leadership issues are something that Bally’s chair, Soo Kim, previously touched upon, saying that this had been the greatest bit of mismanagement that he had ever seen.

As a result, The Star’s efforts to reclaim its licenses and complete its mandatory remediation plan continue. In any case, the recent critiques of the company’s lackluster problem gambling efforts come at an inconvenient time for an operator that continues to struggle to make things right.

In other news, The Star Entertainment Group recently published its unaudited results for the fourth quarter of the fiscal year. Perhaps the biggest highlight of the report was a significant narrowing of the company’s Q4 EBITDA loss.

Earlier this year, the Star Sydney property was slammed with an eight-figure fine and ordered to invest an additional seven-figure sum to strengthen its responsible gambling systems.