The hits keep on coming for S&P/ASX 200 Index (ASX: XJO) casino operator Star Entertainment Group Ltd (ASX: SGR).
Star Entertainment shares went into a trading halt at the company's request shortly after market open this morning.
The ASX 200 casino operator's share price was up 0.6% for the day, at $2.55 per share when trading was paused.
Why is trading in the ASX 200 casino operator paused?
Star Entertainment requested the trading pause after the company was hit with yet another $100 million fine. This one coming from Queensland.
Star noted, "The trading halt is necessary as otherwise trading in securities may take place in an uninformed market."
Queensland's Attorney-General and Justice Minister, Shannon Fentiman, announced the penalty today after Star's operating practices in the state's casino were deemed unsuitable.
The ASX 200 casino operator faces a 90-day licence suspension should it fail to improve its practices by 1 December next year.
"Essentially, this means that Star has 12 months to get their house in order if they do not want to see a 90-day suspension of their licence," Fentiman said (quoted by News.com).
Star was found to have enabled gamblers who had been banned interstate to gamble in its casinos in Queensland. Concerns were also raised over deficiencies in the company's anti-money laundering/counter-terrorism financing program.
According to Fentiman:
These penalties have been considered very carefully following the damning findings of the Gotterson Review as well as considering the responses by Star as part of the show cause process…
Like many Queenslanders, I was appalled at the extent of the actions of The Star in welcoming excluded persons to their casinos and the exorbitant incentives on offer for questionable gamblers.
Star Entertainment share price snapshot
The Star Entertainment share price, pictured below, has taken a beating this year, down 33% in 2022. That compares to a year-to-date loss of 5% posted by the ASX 200.
