A major Australian gambling firm has been fined AU $100m ($62m) by the regulator for failing to stop money laundering and other criminal activities in its casinos.

According to reports, the Star Entertainment Group’s license to operate its Sydney casino has been suspended, and it will take effect on Friday.

The New South Wales (NSW) Independent Casino Commission’s (NICC) action came in response to a report earlier this year which found that the Star’s Sydney casino was involved in money laundering and that it let organised crime thrive.

The report had blasted the operator for taking a “cavalier” approach in monitoring casinos’ activities and also accused it of trying to cover up its illicit actions.

In response to the report at that time, the casino operator pledged to do “whatever necessary” to restore its suitability as an operator and appointed an independent monitor as well as committed to a cultural overhaul.

Under the laws enacted by the NSW government in August, the maximum penalty that can be imposed is a $100 million fine.

On Monday, the regulator said that it won’t revoke the Star’s licence altogether in order to protect thousands of jobs, and added that the Sydney casino would function under a manager appointed by the NSW Independent Casino Commission.

“From Friday the Star will not be able to run the casino on its own until it can earn its licence back,” regulatory chief Philip Crawford was quoted as saying by the BBC.

Several of the top executives of the Star group, including former chief executive Matt Bekier, had resigned in light of the scandal.

Robbie Cooke, who took over as the Star’s new chief executive, had earlier committed to restore the firm’s credibility.

“The business had lost its way in a number of areas, but I’m committed to rehabilitating it and restoring the group to suitability [to hold its casino licenses],” Cooke was quoted as saying.

(With inputs from agencies)

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