Star Entertainment of Australia will create a plan to solve governance issues

Australia’s Star Entertainment Group said on Thursday that it will adopt a thorough remediation plan to strengthen its governance, culture, and processes, days after an investigation declared the casino operator ineligible to have a licence in Sydney.

The investigation report into suspected violations of anti-money laundering regulations and criminal infiltration was revealed on Tuesday, giving Australia’s second-largest casino operator 14 days to persuade New South Wales officials to let it preserve its operating license. Following the news, shares of Star increased 3.4% to A$2.77.

Ben Heap, the interim chairman, stated that in light of the investigation’s conclusions, the company’s culture has to change. Since Crown Resorts, a larger rival of Star, was deemed to be unsuitable to hold gaming licenses due to money laundering, Australia’s casino industry has come under increasing scrutiny, leading various governments to initiate investigations.