Star Entertainment has come under renewed scrutiny over its responsible gambling controls after leaked internal records described shrinking compliance teams, growing review backlogs and pressure to keep customers gambling.
The Sydney Morning Herald (SMH) cites a number of anonymous sources in its report, with one describing the group’s problem-gambling approach as “appalling”.
Group compliance headcount fell from 17 to four this year, according to the media outlet, while group risk dropped from five to two. Star’s investigations team almost halved during the first six months of this year.
Guest support officers also warned they lacked enough staff to identify customers showing signs of gambling harm.
A January memo said the staffing shortage created a “significant and escalating” regulatory risk. Another warned Star could no longer sustain commitments made to regulators in New South Wales and Queensland.
The concerns sit beside a wider push to retain patrons. In a May email, new CEO Bruce Mathieson Jnr urged staff to work on “saving each and every customer”.
The message challenged existing practices around exclusions, time-play controls, security withdrawals and financial-crime management.
Internal case files give the issue a sharper edge. A Brisbane pensioner receiving A$550 a week in welfare benefits gambled almost 400 hours over 14 months. The customer lost more than A$65,000 despite estimated net wealth below A$49,000.
Another gambler lost A$110,000 over 210 hours between March 2023 and February 2025. He then lost another A$100,000 through June 2026.
Star records indicated he used payday lenders and had estimated annual income of A$55,000. He was later removed from a watch list, subject to a welfare check.
Financial crime backlogs add to regulatory concerns
The leak also points to wider financial crime failures. As of 31 December, Star had 1,456 enhanced customer due diligence checks outstanding. It also had 1,057 delayed licence withdrawals, which prevent customers being allowed to gamble, involving problematic patrons.
A separate file said about 270,000 Factiva reports had gone unactioned, with the backlog stretching 699 days.
Other records described weak transaction-monitoring guidance for telegraphic transfers of A$25,000 or more, and also identified a system gap that made multiple customer accounts harder to detect.
These problems follow years of regulatory intervention. Inquiries in NSW and Queensland found Star unsuitable to hold casino licences, and regulators imposed A$100m fines in each state. Star Sydney’s licence remains suspended under special management.
The latest turmoil comes after Bally’s Corporation and Mathieson took control last year. Star is still trying to regain its casino licences and complete regulator-mandated remediation.
Internal correspondence seen by SMH also raised questions over forecasts for the Brisbane casino. Documents described one ambitious internal budget and a second, stronger model discussed in connection with banks lending to Destination Brisbane Consortium.
The second model projected a 25% revenue increase and 236% EBITDA growth and called for A$596.5m in revenue and A$168.8m in EBITDA. A senior manager warned Star would go “nowhere near achieving” it.
Star Brisbane CFO Richard Chan told the media outlet that the alternate budget was only for internal use. He said, as far as he knew, it was not shared with banks.
Governance questions deepen as executives depart
Governance concerns extended to who could gamble at Star properties. Far East Consortium chairman David Chiu, whose company part-owns the Brisbane licence holder, sought high-roller access.
Internal records said governance staff regarded the request as “highly inappropriate”. Mathieson backed Chiu’s case, however, calling objections “ridiculous”, and tried to find a way to circumvent the controls.
The leaked material also detailed management departures. Four Brisbane general managers resigned under new ownership. Star has had three chief risk officers during that period.
Senior finance, operations, risk and compliance executives have also left.
Dave Whimpey was appointed chief operating officer and interim CEO of The Star Brisbane in March. Mathieson had recruited his friend to strengthen Star’s leadership.
Within days, a law firm was engaged to investigate allegations that Whimpey used inappropriate workplace language. Two female employees complained, according to sources cited in the leaked material.
Whimpey was dismissed for misconduct just 10 days after starting. He denied wrongdoing and called the process a “witch-hunt”. Whimpey said he had raised serious governance concerns during his brief tenure, though he declined to describe them.
These revelations could have a material impact because they cut directly across the areas regulators are assessing when deciding whether Star has become suitable to control its own casino licences again.
The leaks do not automatically prevent Star from regaining its licences, but they strike at the exact remediation areas regulators are evaluating.
Another regulatory setback would also land at a difficult moment for Bally’s, whose Star investment is already exposed to Star’s share price and whose own balance sheet is under pressure.