(Updates with the stock movement in the headline and the last paragraph)
Star Entertainment Group (ASX:SGR) said its Sydney casino was fined a total of AU$10 million by the New South Wales Independent Casino Commission (NICC) over multiple compliance breaches and must set aside a further AU$5 million to strengthen financial crime risk management technology, according to an Australian bourse filing on Monday after market hours.
The penalties comprise AU$1.5 million for allowing patrons to gamble beyond permitted time limits, AU$3 million for enabling the conversion of casino reward points into cash, AU$500,000 for failing to prevent an excluded patron from entering the casino on nine occasions, and AU$5 million for widespread shortcomings in financial crime risk management, per the filing.
The NICC acknowledged major improvements under the company's new leadership and technology upgrades but said the penalties reflect the serious breaches that exposed customers to gambling harm and increased the risk of criminal infiltration, the filing added.
The company's shares climbed 3% in recent Tuesday trade.