Star Entertainment Group found unfit to hold NSW casino licence

The Star Casino in Sydney has been found unfit to hold its licence following a damning report containing “confronting” revelations.

The Star Entertainment Group has been found unfit to hold a casino licence in NSW following a damning inquiry into its “confronting” conduct.

A report by Adam Bell SC into the group’s activity was released by NSW Independent Casino Commission (NICC) on Tuesday over the alleged criminal activities that took place at the Star in Sydney.

The casino operator halted trading on the ASX on Monday ahead of the report's release.

Star admitted it had been unsuitable to hold a licence when the inquiry started. It has since made eight submissions to show why it is now suitable.

“Mr Bell did not agree with any of those eight submissions and found that Star remains unsuitable, ” NICC chief commissioner Philip Crawford said on Tuesday.

The Star Casino in Sydney has been found unfit to hold a casino licence

“As a result of the findings of the Bell inquiry, the commission has today sent a show cause notice to Star under the provisions of section 23 of the Casino Control Act.

“In effect … it asks the Star Casino to show cause why disciplinary action should not be taken against it. Star has 14 days to respond to the show cause notice should it wish to.”

Under section 23 of the Act, a casino licence can be revoked or suspended by NICC. Fines can also be issued.

Mr Crawford said given the report’s findings, doing nothing was “not an option” and “all options were on the table”.

“We’re left with a culture which is permeated by bad conduct and it’s a really big job to try to remediate it,” he said.

“We will look at that but wait until we get their submissions before we decide what to do.”

He said Star Entertainment had allegedly allowed money laundering, criminals to gamble in its casino and assisted with organised crime.

NICC chief commissioner Philip Crawford said all options were on the table. Picture: NCA NewsWire / Nikki Short

“It’s quite confronting, the steps they went to, to hide things and hide really bad behaviour,” he alleged.

“When you are talking about things like money laundering, for instance, you are allowing nine criminals to operate with impunity and almost without constraint in your casino.

“It‘s assisting organised crime and very bad people who have done bad things convert their cash from those activities to cash they can use (it) in an illegitimate way in our society.

“Not only were huge amounts of money disguised by the casino as hotel expenses, but vast sums of cash evaded anti-money laundering protocols in numerous situations, most alarmingly through Salon 95 – the secret room with a second cash cage.”

He said those involved made a concerted effort to hide their conduct, which included seeking legal advice.

“A repeating theme throughout the report seemed to be asking not whether something they were looking at doing was appropriate but how they could do it,” Mr Crawford said.

“They tended to ignore the risks inherent in a lot of their conduct and then they tried to hide that conduct.

“Financial goals seem to have been the main driver of their conduct.

“Then they took deliberate actions to mislead and deceive their own bank, their own board of directors and the regulator.”

The report revealed Star Entertainment’s board did not know about the conduct. Picture: Chris Pavlich.

Mr Crawford said Mr Bell did not make any “adverse findings” against Star’s board.

“There is no doubt the board was kept in the dark on what senior management and senior executives were doing,” he said.

“At the end of the day, they didn’t have a clue what was going on in their own company … as such they really weren’t doing their job.”

Kevin Anderson, NSW’s Hospitality and Racing Minister, said in a statement that the findings in the Bell Report were “shocking”.

“Their lack of respect for compliance and regulation is breathtaking,” he said.

“Following recommendations of the Bergin Inquiry into Crown Casino’s operation, the NSW Government has established the NSW Independent Casino Commission (NICC). The NICC has been given a range of new powers to investigate wrongdoing and enforce compliance measures to ensure casinos in NSW operate at the highest standards expected by the NSW Government and community.

“I note that the report does not recommend any legislative changes for Government, and that the operational recommendations will be dealt with by the newly established casino regulator.

I have full confidence in the NICC and its Commissioner Phil Crawford to determine the appropriate actions to take in respect of The Star.”

More to come …