A record A$100m ($64m) dollar fine, the maximum possible under New South Wales state law, has been served on Australian gambling giant Star Entertainment over failure to stop money laundering at its casino in Sydney, Australia. The fine follows a regulatory inquiry in which the company had been accused of a “cavalier” approach to regulation, and “institutional arrogance” that was “breathtaking”.

The punishment was announced by Independent Casino Commission Chief Commissioner Philip Crawford, who also confirmed the casino’s licence had been suspended, the first time that penalty has been imposed in NSW history.

Protect jobs

In an attempt to protect thousands of jobs, the regulator opted not to withdraw the licence altogether. Instead, the casino will continue to operate under a manager appointed by the regulator. The company has said it is committed to “charting a path back to suitability”.

The regulator uncovered a litany of failures including the laundering of hundreds of millions of Australian dollars through a high-roller room; allowing a gang-linked operator to run an illicit cage; failures in surveillance and making deliberate moves to cover its tracks.

Rehabilitate industry

The announcement came on the first day of new Star Chief Executive Robbie Cooke’s tenure and follows the resignations of former senior executives. Cooke has promised to help rehabilitate an industry embroiled in scandal. Earlier this month Star was found unsuitable to run three casinos in the state of Queensland, and earlier this year operator Crown Resorts was fined A$80m ($54.40m) for failing to stop criminal activity at its casinos in Victoria.

Cooke said: “We need to be putting compliance at the top of the list and if you do that, it protects shareholder value. There’s definitely some challenges in the business.”