New South Wales to Dedicate Star Fine to Minimize Gambling Harm.
One year ago this month, the New South Wales (NSW) Independent Casino Commission imposed a significant fine of AU$100 million (equivalent to US$64 million) on the Star Entertainment Group. This financial penalty was the outcome of a state inquiry that found the casino operator to be in breach of multiple gaming regulations, particularly those related to money laundering and other criminal activities.
The Star Sydney, Australia's second-largest casino, which overlooks Darling Harbor, was fined AU$100 million (equivalent to US$64 million) by the New South Wales (NSW) Independent Casino Commission a little over a year ago. This penalty was the result of a state inquiry that found Star Entertainment Group, the operator of The Star Sydney, to have violated gaming regulations related to money laundering and other criminal activities.
The NSW government has now decided to allocate the proceeds from this fine to responsible gaming programs and initiatives. Over a five-year period, the AU$100 million will be invested as follows:
- AU$21.7 million for the Office of Responsible Gaming to fund gambling harm minimization initiatives and reforms.
- AU$10 million for counseling and support services provided by the Responsible Gaming Office.
- AU$6.4 million to support self-exclusion programs within gaming pubs and clubs.
- AU$3.4 million for the Independent Casino Commission to run a cashless gaming trial aimed at reducing money laundering activities and helping casinos and gaming venues better detect problem gamblers.
While the NSW Independent Casino Commission imposed a significant fine on Star Entertainment, the operator was allowed to retain its critical gaming licenses. However, it agreed to various conditions, including close monitoring by state authorities and enhancements to its regulatory safeguards.
Australia has a substantial gaming industry, with casinos and gaming venues generating approximately $18 billion in gross income in the previous year. The country is known for its widespread use of slot machines, locally referred to as "pokies."
The NSW government's investment in programs to minimize gambling harm is part of its efforts to address the social and economic impacts of problem gambling in the country. This includes measures such as the removal of external gambling signage advertising pokies from clubs and pubs and the reduction of cash input limits for pokies. The government aims to raise awareness about the risks associated with gambling and provide support to individuals and communities affected by problem gambling.
The funding announcement coincides with the start of GambleAware Week, an annual initiative that raises awareness of gambling and its potential harms. This year's theme is "What's Gambling Costing You?" It encourages reflection on the broader impacts of problem gambling, beyond just financial losses, including effects on relationships, physical and mental health, and communities. The week is organized and promoted by the NSW Office of Responsible Gaming.