Australian gaming operator The Star has been fined and had license conditions imposed on its Sydney operations however it has not had its casino license cancelled entirely.
According to the New South Wales Independent Casino Commission, the group has been handed a AU$15 million ($10 million) fine, and its license will remain suspended, while NICC-appointed manager Nick Weeks ‘will continue to have oversight of casino operations until at least 31 March 2025’.
After this date, ‘the NICC will reassess The Star’s Suitability to regain its casino license’.
Following a press conference early on Thursday, which caused The Star to suspend trading, the NICC Chief Commissioner indicated that the Bell Two inquiry ‘identified continuing compliance failures and operations at The Star that fell far short of suitability’.
Speaking of the issue, Philip Crawford noted that “Despite more prescriptive supervision that prevented the type of misconduct seen in the first inquiry, numerous shortcomings in governance, regulatory compliance, technology and risk management remain, including in areas that The Star claimed it had remediated.”
The official furthered that “In a casino setting, compliance breaches can have serious consequences for the community, and the Bell Report illustrated how quickly weak controls can lead to criminal infiltration and gambling harm.”
The NICC Chief Commissioner did recognize that The Star was facing “many challenges” and indicated that the commission would “closely monitor The Star’s progress in proving it is capable of regaining its casino license.”
The full scope of the conditions upon The Star encompass:
- AU$15 million fine ‘for serious breaches of four internal control manuals;
- Directions ‘that reflect Adam Bell SC’s report recommendations;
- Stipulated additional financial and operational reporting required between now and March 2025;
- A proposal to amend The Star’s suspended casino license to include more prescriptive requirements around board constitution and key management personnel;
- Requests for amendments to the Casino Control Act as recommended by Mr Bell.
The NICC did praise the new leadership at The Star, noting that its CEO, Steve McCann “has established open lines of communication and cooperation with the NICC which has resulted in a much healthier relationship between the company and the regulator.”
While noting that it was “encouraged by the steps initiated since Mr. McCann’s appointment” and that The Star “is now taking the opportunity to reset its remediation priorities, strengthen its financial position and bolster the leadership team to refocus the business,” the NICC did not that “more work needs to be done before The Star can be regarded as a compliant and responsible operator, deserving of a license”.
The Star Sydney will continue to operate, under the supervision of the NICC-appointed manager ‘until at least 31 March 2025, ‘thus allowing The Star to operate gaming facilities while its license is suspended’.
In comments to AGB, former top regulator Peter Cohen questioned whether The Star might be deemed ‘too big to fail’, noting that a suspension of the casino license was the likely avenue authorities would choose, rather than its outright cancellation.