Independent monitor installed to oversee Star’s Sydney casino

The regulator said the appointment was necessary ‘due to the serious matters uncovered’ by a review into the operation.

The Bell inquiry has already forced the company to wipe $162.5m off the value of its flagship casino. Picture: Joel Carrett/AAP

The NSW casino regulator has appointed Wexted Advisors, a firm specialising in restructure, to be an independent monitor at Star Entertainment’s Sydney venue.

In a brief statement, the Independent Liquor & Gaming Auhtority said the appointment was necessary “due to the serious matters uncovered” by a review into the casino undertaken by Adam Bell SC in recent months.

ILGA will cease to exist and be replaced by a new regulator, the Independent Casino Commission next week.

“Wexted’s reports will assist the NICC to identify any areas of immediate concern until it determines its response to the Bell review,” ILGA said in a statement.

Star shares fell 8c on Thursday, or 2.9 per cent, to close at $2.70.

The inquiry, headed by Mr Bell SC, heard Star allowed wealthy gamblers with alleged links to triad gangs to continue to play at its Pyrmont casino, flouted money laundering laws and misled National Australia Bank and the Bank of China, among others.

ILGA brought in Wexted Advisors in early August to urgently “review” Star’s attempts to overhaul its operations. The company has already seen the departure of many of its executives, including former CEO Matt Bekier.

Star has hired Allen & Overy to act as its own monitor as it proceeds to overhaul its practices.

It is not the first independent monitor installed at an Australian casino, with a royal commission in Victoria into rival Crown Resorts recommending the appointment of a special manager to oversee the casino in Melbourne. Former corruption anti-corruption watchdog commissioner Stephen O’Bryan QC was appointed by the government to the role in late 2021.

The inquiry has already forced the company to wipe $162.5m off the value of its flagship casino, a move which pushed Star to report a $198.6m statutory loss for the year to June 30 last month.

Despite this, equities analysts have been upbeat about the company’s performance – notwithstanding the risk of regulatory action which could mean significant restrictions on, or the loss of, its crucial operating license.

“Trading momentum into early July remained strong with domestic revenue up 9 per cent for (the year to) 18 August,” wrote Goldman Sachs analysts Darshana Nair Syama and Lisa Deng.

“We expect revenue to remain elevated in Queensland through the 2023 financial year, especially from sustained strength in non-gaming revenue as conference activities pick up.”