The Star Entertainment Group is under renewed fire as its problem gambling controls are called 'appalling' by sources, raising questions about its ability to meet regulatory obligations after major staff cuts and ongoing compliance failures
Regulatory pressure on The Star Entertainment Group has intensified after sources described the company’s approach to problem gambling as “appalling,” highlighting a critical moment for the embattled Australian casino operator. Despite leadership changes and a high-profile ownership shift, The Star’s ability to meet its responsible gambling obligations is now in serious doubt.
Staff Cuts Undermine Compliance
According to reporting from The Sydney Morning Herald, The Star’s compliance and risk teams have been reduced to a fraction of their previous size. The compliance department reportedly now consists of just four members, while the group risk team has been cut to two. The investigation team has also seen significant reductions. These cuts have left the company with limited capacity to identify and intervene with customers at risk of gambling harm, a core regulatory requirement for casino operators in Australia.
Internal communications cited by the same report suggest that the reduced workforce may prevent The Star from fulfilling its regulatory commitments. This is not a theoretical risk: Australian regulators have previously found The Star unsuitable to hold a license in some states, citing systematic non-compliance and failures to protect vulnerable players.
Regulatory and Financial Fallout
The Star’s compliance failures have already resulted in substantial penalties. Earlier this year, the Star Sydney property was hit with an eight-figure fine and ordered to invest an additional seven-figure sum to upgrade its responsible gambling systems. These sanctions followed a series of investigations that uncovered severe breaches of Australian casino rules, including failures to prevent excessive gambling losses among customers.
Financially, The Star has struggled to recover. The company’s unaudited fourth-quarter results showed a narrowing of its EBITDA loss, but the business remains under pressure. Last year, Bally’s Corporation and Mathieson acquired a majority stake, a move that was expected to stabilize operations. However, the new leadership has publicly criticized past mismanagement, with Bally’s chair Soo Kim calling it “the greatest bit of mismanagement” he had ever seen.
Ongoing Struggle for License Restoration
The Star is still working to regain its licenses and complete a mandatory remediation plan imposed by regulators. The company’s efforts to retain customers—despite previous failures to protect those at risk—have drawn further scrutiny. Anonymous sources cited by The Sydney Morning Herald allege that the operator’s current responsible gambling measures are inadequate, especially given the reduced compliance staff.
These developments come as Australian regulators and industry bodies continue to tighten standards for consumer protection. In Victoria, for example, the regulator recently launched a multi-year strategy to address gambling harm, as reported earlier. The Star’s ongoing difficulties underscore the operational and reputational risks for operators that fail to meet evolving regulatory expectations.
For readers unfamiliar with the regulatory landscape, casino operators in Australia are required to maintain robust responsible gambling programs as a condition of their license. This includes having dedicated staff to monitor player behavior, intervene when necessary, and ensure compliance with harm-minimization rules. When operators cut compliance resources or fail to act on warning signs, they risk regulatory action, financial penalties, and even license suspension or revocation. The Star’s situation is a stark example of how operational decisions can directly impact both regulatory standing and market viability.
