The Star Entertainment Group in trading halt, as final Bell report ‘validates concerns’ on suitability
An independent review into whether ASX-listed gambling giant The Star was fit to hold a NSW licence has reinforced concerns about its suitability. Here’s what it means
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An independent review into whether ASX-listed gambling giant The Star was fit to hold a NSW licence has reinforced concerns about its suitability.
The company entered a trading halt just before 10am on Friday as the NSW independent Casino Commission (NICC) released its second Bell Report into The Star.
The commission said it was “considering next steps for the future of the suspended casino operator”.
The release came the day after the grand opening of The Star’s long-awaited $3.6bn Queen’s Wharf project in Brisbane, and two days after it announced a milestone in its $2.3bn Gold Coast project.
The first Bell Report from 2022 deemed The Star to be unsuitable to hold a NSW casino licence because of serious regulatory failures.
The Star Entertainment Group was granted a stay on a ruinous Queensland licence suspension, with the Queensland Government issuing a deferral on a 90-day ban in May.
The Star’s operations in Brisbane and the Gold Coast were originally set to cop a 90-day suspension from December 1 last year, but it has been extended twice and is now deferred until December 20 this year.
NICC Chief Commissioner Philip Crawford said, despite some improvement, the latest Bell Report had “validated the concerns that prompted the second Inquiry”.
“The Bell Report reveals a company that had not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report,” he said in a statement.
“It has only very recently turned its attention to dealing with challenges that should have been prioritised earlier.
“The Bell Report underscores the NICC’s concerns that it was not receiving all of the facts from The Star at a time when we needed certainty the company could fund and prioritise an urgent business turnaround.
“The NICC is responsible for regulating an industry that is highly vulnerable to criminal infiltration and we are tasked with setting regulatory standards that meet the community’s expectations.
“It was unclear whether The Star could feasibly operate under less supervision, when it was exhibiting past behaviours with its licence still suspended.”
Commissioner Crawford said the appointments of new executives including group CEO Steve McCann, Sydney CEO Janelle Campbell and group chief operating officer Jeannie Mok was promising.
“The level of transparency and co-operation has certainly improved since their appointments,” he said.
The NICC said it was contemplating Mr Bell’s findings, including four compliance breaches, and would “respond in due course”.
The NICC’s costs are funded through the casino supervisory levy, paid for by the casinos – not taxpayers.
In this instance, the board of The Star has agreed to reimburse the full cost of the Bell Inquiry totalling approximately $3.2m.
In a statement to the ASX, The Star Entertainment Group requested the trading halt so it could consider the implications of the report on its upcoming full-year financial results, which were due out Friday.
The Star last traded at 45c.
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