The NSW Independent Casino Commission (NICC) released two of the three volumes from the second Bell Report Friday (30 August) as it continues to mull potential disciplinary action against Star Entertainment. The report recommends that Star again be found unsuitable.
In a release, the NICC said that it is still “considering next steps for the future of the suspended casino operator.” But the first two volumes of the report, which was submitted 31 July, are now public.
Also Friday in an ASX filing, Star said it had halted trading, in preparation for the release of an announcement. The company closed its Treasury Brisbane casino 25 August and opened the first phase of its long-awaited Queen’s Wharf development 29 August.
The two volumes encompass some 500 pages, detailing a long list of anti-money laundering violations and other failures. Overall, the report’s recommendation is clear: “The Star Entities are presently falling short of what is required for suitability.”
The first Bell inquiry, headed by Adam Bell, SC, was launched in 2022. That inquiry determined that the operator was unsuitable for licensure in the state. Star paid heavy fines, underwent widespread executive changes and saw its value plummet. Nick Weeks was appointed to oversee Star Sydney’s operations and its remediation efforts, and he remains in place.
It’s not certain Star will lose licence
The report’s recommendation does not necessarily mean Star Sydney will lose its licence. On 1 August, Star said that Weeks’ term was extended through 31 March 2025. That has led many to believe that the company will be given another chance after all. But the NICC asserted Friday that the operator’s litany of regulatory violations has not been forgotten.
“The Bell Report reveals a company that had not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report. It has only very recently turned its attention to dealing with challenges that should have been prioritised earlier,” NICC Chief Commissioner Philip Crawford said.
Recent executive hires have done well to right the ship for Star. Steve McCann came on as group CEO in June, Jeannie Mok was named group COO in May and Janelle Campbell joined as Star Sydney CEO in January. The trio’s influence “will be vital if the NICC decides that The Star should remain as the operator of The Star Casino,” the regulator said.
Star hopeful for another chance at suitability
After the dust settled on the first investigation, the company was blindsided by the launch the second inquiry in February. In public hearings throughout the spring, Star’s lack of progress was put on full display. Its relationship with the NICC had become combative, and an “us versus them” mentality had developed.
Star was also found to have falsified responsible gambling paperwork and lacked basic oversight of casino operations. In one example, a faulty cash-out machine went unchecked for over a month, resulting in a multimillion-dollar loss.
Former chairman David Foster and former CEO Robbie Cooke both left the company as a result of the investigation.
With two inquiries both pointing to unsuitability, it’s possible that Star Sydney could be stripped of its licence. That scenario would open up a number of possibilities and unanswered questions.
Source : IGamingBusiness
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Author : News7
Publish date : 2024-08-30 21:39:00
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