Gaming

Crown Resorts is seeking $10 million in security for costs from the law firm running a shareholder class action accusing it of lax anti-money laundering compliance, arguing the sum is justified in light of the firm’s potential recovery under a tiered group costs order.

Star Entertainment has made admissions in AUSTRAC’s action alleging non-compliance with anti-money laundering and counter-terrorism financing laws, but there are still substantial issues in dispute, a court has heard.

Global cryptocurrency and gambling website Stake.com is fighting to strike out claims in a lawsuit by Sydney-based online investment platform Stake over a planned Australian launch.

The winning, 14 per cent contingency fee proposal by Slater & Gordon in a fight to run a class action against Star Entertainment was not driven by a desire to prevail in the contest and buy market share but was the product of a “reasoned decision” that took into account the law firm’s practice as a whole, a judge has found.

Star Entertainment coughed up $595 million in regulatory and legal costs in the 2023 financial year, as it faces ongoing disputes with ASIC and AUSTRAC and an $80 million class action.

SkyCity may be the first company to test the strength of AUSTRAC’s claims in court, according to a judge who recently said in a separate case that the regulator’s habit of agreeing to penalties could give rise to a “moral hazard”.

A judge has approved a $450 million penalty put forward by Crown Resorts and AUSTRAC despite reservations about evidence going to the casino operator’s financial position.

The judge asked to approve a proposed $450 million penalty in AUSTRAC’s case against Crown Resorts has questioned whether the practice of regulators settling enforcement action ahead of trial gave rise to a “moral hazard” problem.

A proposed interest-free payment plan for a $450 million penalty agreed to between Crown Resorts and AUSTRAC has been questioned by a judge, who said it would have “the Commonwealth of Australia act as the Crown’s banker” for two years.

The Victorian government has elevated an Associate Justice who has overseen class actions and a senior counsel who assisted the Victorian royal commission into Crown Resorts to serve as judges on the Supreme Court of Victoria.