In a Federal Court hearing on Monday, Justice Michael Lee questioned if the Australian Transaction Reports and Analysis Centre was serious about proceeding swiftly in its case against Crown, alleging the casino’s programs breached anti-money laundering and counter-terrorism financing laws.

The regulator has also filed similar lawsuits against Sydney’s The Star and SkyCity Adelaide in late 2022.

The judge noted that although the regulator launched its lawsuit against Crown Melbourne and Crown Perth in March last year, nothing much had happened in the case with the parties stuck in negotiations about agreed facts and admissions.

“The Congress of Vienna took nine months to talk about the future of Europe, you’ve had 12 months to talk about admissions,” Justice Lee told AUSTRAC’s barrister Michael Hodge KC.

The congress was held during a series of diplomatic meetings in 1814 and 1815 to discuss the new layout of Europe after Napoleon’s defeat and surrender.

“What’s happening? Why has there been such an extraordinary delay for no apparent progress?” the judge asked.

Hodge acknowledged that Crown had yet to make any formal admissions despite the lengthy talks but said AUSTRAC was “very serious” about running the lawsuit against the casino giant.

Crown’s barrister Kane Loxley said that while there had been “sticking points” in the talks, his client was “very likely” to admit breaches regarding its programs.

“It is very likely that Crown will be admitting non-compliance with those programs and the AML/CTF rules,” he said.

AUSTRAC claims the casino’s failure to meet its obligations made its systems more vulnerable to being exploited to criminal exploitation.

Any disagreements would likely be around how the laws in this area were regarded and interpreted, the court heard.

A Crown Resorts spokesperson said after the hearing that the company was working with the regulator regarding the court case and also to improve its own business practices.

“We have been engaging constructively with AUSTRAC and will continue to do so as it works to the court-ordered timetable in relation to this matter,” they said.

“Crown has an ambition to be the world leader in the detection and prevention of financial crime, as part of its commitment to the delivery of safe and responsible gaming and entertainment.”

Representing The Star in the Federal Court on Monday, barrister John Sheahan KC said most cases of these kinds resulted in “complete admissions” by the party being sued.

“It is the goal of my client and I’m sure of AUSTRAC to bring that outcome about,” he said.

SkyCity’s barrister Wendy Harris KC did not say whether her client would make similar admissions.

On Monday, the court also held a brief hearing of a separate lawsuit filed by the Australian Securities and Investments Commission against 11 current and former Star directors, giving directions about the next steps in this case.

Former chair John O’Neill, former managing director and CEO Matthias Bekier and directors Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, Benjamin Heap and Zlatko Todorcevski are in the firing line.

The Crown comments came as rival casino operator Star Entertainment Group posted a big revenue drop at its flagship Sydney casino and warned of a substantial impairment charge in its upcoming half-year results following heavy penalties and legal action arising from damning inquiries.

The embattled casino operator on Monday said it anticipated a non-cash impairment charge of between $400 million to $1.6 billion against its first-half results, in relation to its NSW business.

Star attributed the writedown to operational changes after a regulatory inquiry that resulted in its casino licence in the state being suspended, as well as a likely increase in NSW casino duty rates starting in the 2023/24 financial year.

“Whilst the outcome of recent regulatory and legislative developments remains uncertain, we have taken a prudent approach to assessing the carrying value of our assets, which has resulted in a non-cash impairment charge which will be recognised in our 1H FY23 results,” Group CEO Robbie Cooke said in a statement.

Shares have lost nearly 50 per cent of their value during the past 12 months.

NSW’s gaming regulator suspended Star’s Sydney licence in October and slapped a record $100 million fine on the company after an inquiry found the casino had allowed money laundering to take place inside private rooms and identified numerous compliance failures.

A similar review in Queensland also fined Star $100 million and found it unfit to hold the two casino licences in the state after the company neglected anti-money laundering and responsible gaming duties in the state.

Shareholders have separately launched a class action against the group over its failure to disclose money laundering links to organised crime.

The regulatory troubles have hit Star’s performance with the company incurring compliance and remediation costs of $20 million, including to increase headcount over the first half.

On Monday, Star said revenue at its main Sydney casino for the six months to December was down 13.5 per cent on pre-Covid levels.

Star said it has also been impacted by increased competition since the opening of rival Crown’s new Sydney casino in August 2022.

The company’s operational challenges look set to continue after the NSW government in December announced without consultation that it would increase taxes on the state’s two casinos.

“If implemented in their current form, the proposed duty rate increases would have a significant adverse impact on the profitability of The Star Sydney, further compounded by the changing operating and competitive environment,” the group said, while flagging the impairment charge.

“In this scenario, The Star intends to undertake an urgent review of The Star Sydney’s operating model and assets, with a view to maximising value for the group’s shareholders.”

-with AAP