The Star Entertainment Group Limited has been given until September 27th to reply to a “show cause” notice by the New South Wales Independent Casino Commission (NICC) following the release of the final report from the 2024 Independent Inquiry into the company.
The inquiry, led by Adam Bell SC under the Casino Control Act 1992, published its findings on August 30, 2024, in what is referred to as the Bell Two Report.
The inquiry report, delivered in July 2024, found that The Star breached various internal control measures numerous times between June 2023 and July 2024, including issues related to anti-money laundering, customer probity, and responsible gambling. These breaches violate the conditions of The Star’s casino licence.
The NICC is considering disciplinary action, which could include licence suspension or cancellation, fines up to AU$100 million ($67.2 million), or other penalties.
The company’s trading on the Australian Securities Exchange (ASX) has been halted since the release of the results of the Bell Two inquiry.
The recent NICC’s notice, served to The Star, raises concerns about the company’s suitability to hold the casino licence for The Star Sydney, as well as its progress on a remediation plan addressing the report’s key findings.
In addition to the notice, the NICC has requested that The Star provide detailed information regarding the company’s financial position and its plans to address the issues raised on a continuing basis.
The Star indicated it is expected to respond to the Notice by September 27th, with the group saying it is ‘currently considering the matters raised in the notice and the Bell Two Report’, while ‘working closely with various stakeholders, including state governments, regulators, and its lenders, to assess its financial standing’.
In a recent interview with AGB, a former Victorian gaming regulator has predicted that there is a 70 percent chance that The Star Entertainment Group can see the license suspension period of its Sydney casino extended, while seeing zero chance it will be granted back after the Bell Two inquiry.
