Star Sydney Inquiry Hears Further Damning Evidence

In Australia, the second inquiry into the casino license suitability of The Star Sydney has heard how a software malfunction led to the venue’s automatic prize redemption machines handing out more than $2 million in free cash over a 13-day period.

The examination from the New South Wales Independent Casino Commission (NICC) regulator was told 43 people took advantage of the mistake occurring in a quartet of the property’s ticket-in, ticket-out (TITO) machines to altogether pocket some $2,072,330.

Massive Mistake

Owned by The Star Entertainment Group Limited, The Star Sydney hosts the second largest casino in Australia, featuring approximately 1,500 slots alongside a large selection of gaming tables with baccarat, poker, craps, blackjack, and roulette entertainment. 

The Sydney Morning Herald reports the property’s TITO machines allow successful punters to redeem any winnings in cash by feeding in barcoded vouchers, which the property is then obliged to reconcile on a daily basis.

Oblivious Operation

This state of affairs reportedly meant The Star Sydney was subsequently ignorant when a software malfunction allowed unscrupulous gamblers to simultaneously feed in more than one voucher and be paid the combined cash prize but with only a single ticket being kept by the machines. 

The remaining chits were purportedly spat out and able to be redeemed multiple times, although each featured a required $1,288 cap so as to help mitigate the risks of money laundering. 

The state-appointed independent manager for The Star Sydney, Nicholas Weeks, purportedly told the inquiry that allowing such false payouts to continue for many days had represented ‘a very significant failure across a large number of people and teams’. 

The Daily Mail reports that he also disclosed that the TITO machines could have been faulty for up to four weeks before the malfunction was noticed by gamblers.

Deepening Dilemma

The inquiry reportedly heard evidence that the Chief Investor Relations Manager for The Star Entertainment Group Limited, Giovanni Rizzo, may have fruitlessly asked the firm’s Chief Financial Officer, Christina Katsibouba, to hide the TITO losses at the time of presenting the Brisbane-headquartered firm’s half-year results in February.

The former Anti-Money Laundering Compliance Manager for ClubsNSW, Troy Stolz, served as an expert witness and told the presiding magistrate that venues operating TITO machines are required to closely monitor how such units are being used. 

He additionally asserted The Star Sydney’s failure ‘raises questions around the robustness and effectiveness’ of its anti-money laundering and counter-terrorism financing programs.

Precarious Position

This state-sanctioned inquiry follows a 2022 precursor in which The Star Sydney was deemed wanting over a series of shortcomings associated with its cultural, communications and anti-money laundering processes. 

The 29-year-old venue was subsequently allowed to keep its casino license after paying a record fine of just over $65 million and agreeing to clean up its act via the completion of a remediation plan under the supervision of Weeks.

The 15-week examination is being conducted to determine whether this process has been satisfactorily completed or if further action is required. However, it has already heard damning revelations regarding the venue’s senior leadership and could well decide to levy further fines and penalties or even revoke The Star Sydney’s casino license altogether.

(Image: Australian Associated Press / Alamy)