Star Entertainment has two weeks to show cause why it should not lose its lucrative NSW casino licence or face up to a $100 million fine, after a regulatory inquiry found serious failures of corporate governance and culture and declared the company unsuitable to hold the licence.

The state’s casino watchdog hit Star with the show cause notice on Tuesday, after the Bell inquiry found Star had deliberately misled the regulator and its bankers, allowed the “inherently deceptive and unethical process” of China UnionPay to continue and allowed junket operator Suncity to do business at the casino despite allegations of criminality. Some “individuals” are being investigated by the police.