Trading in the securities of The Star Entertainment Group Limited has been suspended at the company’s request after a report by the New South Wales casino regulator declared the group unsuitable to regain its Sydney casino license.
According to a dispatch from The Star, unless the Australian Securities Exchange (ASX) decides otherwise, the halt will remain in effect until normal trading resumes on Monday, September 2nd, 2024, or until an announcement by the group is released.
The decision comes after a troubling inquiry that deemed Star Entertainment unsuitable to regain control of its lucrative Sydney casino.
The New South Wales Independent Casino Commission (NICC) has published the second Bell Report regarding The Star and is now considering the future of the suspended casino operator. Two volumes of the three-volume report will be made public as the NICC reviews the findings of Mr. Adam Bell SC and their potential implications.
The first Bell Report, released in 2022, deemed The Star unsuitable to hold a casino license due to serious regulatory failures.
In that year, the state government imposed AU$100 million (US$68.1 million) in fines on The Star due to “major failings” at its casinos.
NICC Chief Commissioner Philip Crawford now stated that the latest report has confirmed the concerns that led to the second inquiry.
“The Bell Report reveals a company that has not acted swiftly enough to address the governance and cultural issues identified in the first report,” Crawford said. “It has only recently begun to focus on challenges that should have been prioritized earlier.”
Crawford acknowledged the experience of key executives, including Group CEO Steve McCann, Sydney CEO Janelle Campbell, and Group COO Jeannie Mok, in engaging with regulators and implementing necessary cultural changes. “Their expertise will be vital if the NICC decides that The Star should continue operating The Star Casino,” he added.
Star Sydney
While Crawford noted improvements in transparency and cooperation since these appointments, he emphasized ongoing concerns about the accuracy of information provided by The Star. “It was unclear whether The Star could feasibly operate under less supervision given its past behaviors, especially with its license still suspended.”
The NICC is currently evaluating Mr. Bell’s findings, which include four compliance breaches, and plans to respond in due course.
The Star’s board has agreed to reimburse the full cost of the Bell Inquiry, totaling approximately AU$3.2 million ($2.1 million).
