Posted on: August 30, 2024, 09:16h.
Last updated on: August 30, 2024, 09:16h.
The Star Entertainment Group in Australia has again been found unsuitable to hold a gaming permit in New South Wales (NSW) for its Sydney operation.
The 2024 Independent Inquiry Into The Star, the second government probe in the state to determine if The Star is worthy of possessing a casino license in NSW, concluded this week that the firm remains unsuitable to run gaming operations at The Star Sydney. The integrated resort opened in 1995 and is the second-largest casino in Australia behind rival Crown Resorts’ Crown Melbourne.
The 2024 inquiry was again led by Adam Bell SC. Bell reported to the New South Wales Independent Casino Commission (NICC) that The Star failed to implement recommendations from the 2022 inquiry that found the casino to be non-compliant with anti-money laundering regulations and evidence of widespread fraud.
The Bell Report reveals a company that has 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 prioritized earlier,” said NICC Chief Commissioner Philip Crawford.
The Star Sydney holds NSW’s lone slot machine license, commonly called poker machines or pokies Down Under. As a result, Crown Sydney can only operate dealer games and electronic table games.
The Bell report comes just two days after The Star opened its A$3.8 billion (US$2.5 billion) Queens Wharf in Queensland’s Brisbane. The Star also runs The Star Gold Coast in Queensland.
Next Steps
Crawford said the NICC is considering its next steps for the future of the suspended casino operator. Star Sydney’s nearly 2,000 slots and 140 table games remain in operation for the interim.
In his 2022 inquiry, Bell determined that The Star Sydney failed to protect its casino from being used by criminal triad gangs throughout Asia to wash dirty money clean in private high roller junket rooms.
Crown, which faced similar accusations in a separate NSW inquiry, immediately took remedial steps to become compliant and appease the probe’s findings. But Bell said The Star leadership and board room became combative and threatened a lawsuit against the 2022 inquiry outcome.
Along with appointing a government monitor following the 2022 probe, the NICC imposed an A$100 million (US$68M) pecuniary penalty against The Star. The 2022 report made 30 recommendations to address the issues identified in the inquiry.
Bell found in the subsequent probe that it was only recently — specifically, after the departures of CEO Robbie Cookie and Chair David Foster — that meaningful changes came to The Star.
Governance Improvements, Stock Halted
Crawford noted regulatory compliance improvements since Steve McCann became the group’s CEO in late June, Jeannie Mok became group CFO in late May, and Janelle Campbell became CEO of The Star Sydney in January.
The level of transparency and cooperation has certainly improved since their appointments,” Crawford said.
The Star successfully petitioned the Australian Securities Exchange to halt the trading of its shares in the wake of the Bell findings. The Star was to issue its annual financial results today but requested more time to formulate guidance. Shares will resume trading next week.
