Australian operator Star Entertainment Group Ltd. has announced that its proposal to add 1,000 new machines to its Star Sydney casino has been denied by the New South Wales (NSW) government.
According to the company, the request was denied by NSW officials because they felt that it was not the right decision “at this time,” in light of Star’s ongoing investigations in both NSW and Queensland—the company is accused of money laundering and other wrongdoings that could result in the revocation of its casino licenses.
The results of the NSW investigation, also known as the Bell Inquiry, are expected by the end of August, whereas the Queensland inquiry was just launched in recent weeks.
The Star Sydney’s bid for the additional machines was originally submitted back in August 2021. The casino is currently licensed for 1,500 machines, so an additional 1,000 would substantially increase its capacity for traffic and revenue.
Despite the recent denial, there is still a chance Star could reapply and receive approval down the road, if the results of the ongoing inquiries aren’t terribly damning.
The company has benefited from limited competition after its biggest competitor, Crown Resorts, was stripped of its Sydney license after undergoing similar inquiries. However, Crown was recently sold to U.S.-based Blackstone Group, and has received approval to reopen its three casinos.
