The Star Entertainment Group has recently found itself in hot water with the New South Wales Independent Casino Commission (NICC), which has issued a warning that it may cancel the company’s casino license in the Australian state due to regulatory breaches identified in the second Bell Report. The NICC has issued a show cause notice to Star, giving them 14 days to respond as to why disciplinary action should not be taken, with a deadline set for 27 September.
The second Bell Report, which was recently revealed by the NICC, outlines a troubling operating environment at Star Sydney in NSW. This report echoes conclusions from the first inquiry in 2022, which deemed Star unsuitable for a license. Star itself has admitted during public hearings that it is currently not fit to operate independently and has lobbied for conditional suitability, a premise that was rejected by Bell.
The NICC’s show cause notice highlights four major breaches identified in the Bell Report, including a fraud scheme involving a faulty cash-out machine, failure to properly vet high-risk patrons, and falsification of harm minimization checks for patrons playing for extended periods. The notice also raises concerns about Star’s management structure, operation, and culture, which were found to be siloed and combative.
Depending on Star’s response to the notice, the NICC has a range of disciplinary options at its disposal, including cancelling the casino license, issuing a financial penalty of up to AU$100m, amending the terms and conditions of the license, blocking certain activities, or issuing a letter of censure. The NICC is also considering Star’s ability to obtain financial resources to ensure the financial viability of the casino.
In response to the notice, Star stated that it is considering the matters raised and expects to provide a full response by the deadline. The NICC has also requested submissions from Star on actions being taken in response to the findings in the Bell Report, as well as information on the company’s financial position and proposed plans to address the issues raised.
Overall, the NICC is closely monitoring the situation and working with various stakeholders and advisers to ensure that the regulatory breaches are addressed appropriately. Star’s financial position, in particular, is under scrutiny, especially after the company’s recent suspension from trading on the ASX due to delays in publishing its full-year results. The NICC is committed to making informed decisions about Star’s financial suitability and ensuring that the company operates in compliance with all regulatory requirements.
