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SYDNEY, Sept 13 (Reuters) - Australia's New South Wales (NSW) state gambling regulator said on Tuesday Star Entertainment Group (SGR) has been found unfit to hold a casino licence after an inquiry into alleged breaches of anti-money laundering and counter-terrorism law.
The New South Wales independent casino commission (NICC) said the report identified "systemic governance, risk and cultural failures" at the Sydney casino of Star, Australia's second biggest casino operator.
"The report is, quite frankly, shocking. It provides evidence of an extensive compliance breakdown in key areas of (Star's) business," said NICC Chief Commissioner Philip Crawford.
Huge amounts of money were disguised by the casino as hotel expenses and vast sums of cash evaded anti-money laundering protocols several times, mostly through a secret room with a second cash cage, Crawford said.
Star did not immediately respond to a request seeking comment. The company's shares are on a trading halt since Monday due to the release of the report.
Crawford said regulators were still not getting the "vibe" from Star that it was serious about fixing its problems.
"The institutional arrogance hasn't changed much. There is still an unwillingness to show the right level of transparency, he said during a media briefing, but added the majority of Star's 8,000 employees were following the correct procedures.
NICC will hold off on taking any disciplinary actions until it gets the company's response, due within 14 days.
Australia's casino sector has been under intense scrutiny since media reports in 2019 accused Star's larger rival Crown Resorts (CWN) of wide-ranging misconduct including failure to stop money laundering by foreign criminals on its premises.
A separate probe on Star is happening in neighbouring Queensland state with its gambling regulator investigating whether to let Star keep its gambling licence, putting a cloud over its plan to open a A$3.6 billion ($2.48 billion) casino resort in Brisbane as planned in 2023.
