Last Monday, the Australian Transaction Reports and Analysis Center (AUSTRAC) launched an investigation into some of the country’s casino operators. This follows concerns about a potential violation of some of Australia’s money laundering laws. However, casinos in all five major cities undergo extensive background checks to ensure they are operating within the limits of gambling laws and regulations. If any of the casinos in the five cities have committed violations, it could possibly be the case Subject to fines and consequences such as the withdrawal of their licenses.
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The most notable parties under investigation include the National Australia Bank (NAB) and renowned casino operators Crown Resorts, Star Entertainment Group and SkyCity Entertainment Group.
Prior to announcing the fuller investigation, Crown Resorts was already being investigated over concerns about possible violations at its Melbourne casino. It’s gotten even hotter for the operator now that his Perth casino is also being put to the test. Now all other casinos are going to take roughly the same heat from the Australian financial crime watchdog.
“The Australian casino sector is at risk of criminal abuse because of the products and services it offers. We have an enforcement investigation ongoing at Crown Casino which shows the seriousness of our concerns. And we also have extensive compliance work underway in the casino sector. “
Nicole Rose, CEO of AUSTRAC, wrote in an editorial that was published in The Australian.
The financial crime watchdog is obviously not going to give in anytime soon, at least until it gets to the bottom of any concerns that may have arisen. Ultimately, the goal is to make gambling much safer for everyone in the country by holding the operators and their affiliate partner service providers accountable.
The implications
Needless to say, casino operators in Australia are already under a lot of pressure, especially when it comes to Recovery efforts after COVID-19. The probe therefore adds an extra layer of pressure to deal with. But the pressure isn’t the only impact being felt by casino operators.
To put this into perspective, the new investigation is making it difficult for Star to acquire $ 9 billion from bigger rival Crown. This has also resulted in a noticeable decline in Crown Resorts’ share prices, and the other operators could experience the same.
