Star Entertainment suspends rebate program amid compliance probe

Australia's Star Entertainment Group Ltd on Monday said it has suspended a program whereby players can convert awards to cash to address possible breaches of anti-money laundering and counter-terrorism laws at its casinos.

Under the program, casinos give awards to players of certain games, who can then convert them into money through playing those games.

Star said it "resolved to immediately suspend rebate programs for both domestic and international players across all its casinos until further notice."

It said it does not expect the decision to have any material impact on earnings in the current financial year.

The firm's Star Sydney hotel is currently under regulatory review after a public hearing revealed possible compliance lapses. Matt Bekier resigned as chief executive officer in March, saying his role made him accountable for Star's culture.

Last week, Harry Theodore resigned as chief financial officer, with Star on Monday saying it has appointed Christina Katsibouba to the role on an interim basis.

Larger rival Crown Resorts Ltd has also been subject to public hearings after which it was stripped of its gambling licence for its main Melbourne resort.