Australia’s financial regulator ASIC said this week that it was responsible for casino operator Star Entertainment Group including an additional AU$150 million (US$101 million) in provisions for expected fines and penalties in its financial report for the six months to 31 December 2022.
As previously reported by Inside Asian Gaming, Star last week announced a net loss after tax of AU$1.26 billion (US$858 million) for 1H23, which included AU$1.31 billion (US$892 million) in “significant items” – namely impairment of Sydney property assets, penalties and costs associated with regulatory reviews, among others.
ASIC this week claimed credit for AU$150 million of those significant items, stating it had previously raised concerns that no provision had been recorded in Star’s FY22 results for likely fines and penalties for non-compliance with Anti-Money Laundering and Counter-Terrorism Financing laws.
“These alleged non-compliances are the subject of an AUSTRAC investigation,” ASIC said.
“ASIC’s financial reporting surveillance program aims to improve the quality of financial reporting and to ensure financial reports have been prepared in accordance with the law, supporting investor confidence and the integrity of Australia’s capital markets.
“ASIC reminds preparers of financial reports that consideration should be given to the need for and adequacy of provisions. ASIC also recently emphasised the importance of making adequate provisions in financial reports.”
Star has already been whacked with two separate AU$100 million (US$68 million) fines by regulators in NSW and Queensland for compliance failures and faces a significant hike in the tax rate it pays on poker machine revenues.
The company recently said it faced a non-cash impairment charge of between AU$400 million and AU$1.6 billion (US$277 million and US$1.12 billion) for FY23 in relation to fines and taxes at The Star Sydney.
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