Star Entertainment has responded to the Bell Two inquiry and is now awaiting a ruling from the NSW Independent Casino Commission (NICC) regarding the fate of Star Sydney. The company stated that it has lodged its response to the show cause notice issued by the NICC on 13 September, which highlighted various compliance breaches that were uncovered during the investigation.

In a business update released on Thursday, Star mentioned that it will implement any relevant recommendations that may arise from the inquiry. The company also made additional submissions to the NICC on various matters, including Star Sydney’s suitability, progress on its remediation plan, financial position, and plans to address ongoing financial issues.

The NICC confirmed that it has received the response from Star, indicating that a final decision will be made sometime in October. Possible outcomes include Star retaining its conditional NSW license or facing revocation, along with potential fines and increased regulations.

Following the response, trading for Star on the ASX resumed, with shares plummeting by 44% and the company losing almost half of its market value. The stock now sits at $0.25, a significant drop from its previous highs.

The year 2024 has been particularly damaging for Star, with ongoing remediation efforts from previous inquiries and the launch of the Bell Two investigation in February. Public hearings revealed a tense relationship between Star and the regulator, as well as a toxic work environment that prioritized meeting obligations over addressing underlying issues.

The NICC’s report on Star Sydney, released in August, painted a bleak picture of the company’s operations and reiterated concerns about its suitability for licensure in NSW. As a result of the inquiry, former chairman David Foster and former CEO Robbie Cooke were ousted, with several other officials also departing the company.

Industry veteran Steve McCann was appointed as CEO in an effort to steer Star in the right direction. McCann, who previously led Crown Resorts through a similar regulatory crisis, has emphasized the challenges ahead for Star but dismissed speculation about a potential sale.

McCann’s appointment was viewed positively by the NICC, but challenges remain for Star as it navigates the aftermath of the Bell Two inquiry. The company’s future remains uncertain as stakeholders await a final decision from the regulator.