D-Day for Star as regulator set to rule on Bell II findings
The powerful NSW casino regulator will today rule on whether the troubled Star Entertainment Group is suitable to retain its Sydney casino licence.
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The powerful NSW casino regulator will rule today on whether troubled Star Entertainment Group is suitable to retain its Sydney casino licence.
The NSW Independent Casino Commission (NICC) last month issued a show cause notice against The Star following the findings of the Bell II inquiry which showed continuing regulatory missteps by the group.
The NICC said the notice seeks a response as to why it should not take disciplinary action against Star in respect of breaches substantiated in the Bell II report.
The regulator said four significant breaches had been detailed in the report by Adam Bell SC, including one which resulted in a cash fraud against The Star, a failure to run source of wealth checks on hundreds of members flagged as high risk, and fraudulent guest welfare entries which put already vulnerable customers at higher risk of harm.
Disciplinary options available to the NICC include cancellation of the licence, and a pecuniary penalty of up to $100m. The commission could also decide to amend the terms or conditions of Star’s licence, or require an enforceable undertaking on its future actions.
The NICC last month it would consider The Star’s transformation progress, including management, operations and culture, and analyse whether the company has the financial resources to properly discharge its obligations.
Star reported 2024 losses of $1.69bn after $2.44bn in red ink in the prior corresponding period, as it continued to battle regulatory costs and challenging trading conditions.
New Star Entertainment chief executive Steve McCann is looking to slash up to 350 jobs and offload hotels and other assets after warning the company was “on its knees”.
Star Entertainment Group’s auditors have raised red flags about its ability to continue as a going concern with expenses related to the new Queen’s Wharf casino precinct a key issue.
Star also has warned earnings uncertainty arising from loss of market share, financial crime remediation and the impact of casino operating reforms cast significant doubt on the group’s ability to continue in business.
The phased opening of the $3.6bn Queen’s Wharf project in Brisbane, which has faced cost overruns and delays, also continues to dog the company.
Originally published as D-Day for Star as regulator set to rule on Bell II findings
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