The Star Entertainment Group says it will suspend its high-roller “rebate” program until it addresses probity issues revealed in a damning public inquiry into its Sydney casino.
“The board has resolved to immediately suspend rebate programs for both domestic and international players across all its casinos until further notice,” The Star said in an ASX statement on Monday morning.
The Star Entertainment Group has announced it is suspending its VIP rebate program “until further notice”. Credit:Louise Kennerley
“The Star will work with gaming regulators to address various identified risks as part of ongoing reviews of systems and processes.“
Casinos such as The Star put their highest-spending customers on “rebate” programs to lure them to their tables, which involves giving them a set percentage kickback on every dollar they gamble.
The Star’s winnings on international rebate players are also taxed 10 per cent in NSW, rather than 27.5 per cent for local players, under an agreement intended to help the group compete with overseas casinos. The inquiry has heard Star may have underpaid as much as $2.5 million in state tax by incorrectly classifying local high-rollers as international players.
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The NSW inquiry underway, which was triggered by reporting in this masthead, has examined The Star’s lax anti-money laundering controls, poor due diligence of ultra-wealthy gamblers and its abuse of China UnionPay cards in the VIP business.
The Star said the decision would not have a material impact on earnings in FY22.
On Friday afternoon the company announced three of its top executives had resigned after being the subject of intense scrutiny at the NSW inquiry.
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