Towards the end of last week, Sydney’s Star Casino has been handed a $15 million fine and been advised that its licence will remain suspended after the Bell Two Inquiry identified continuing compliance failures and unsuitable operations. Since then, shares at the ASX-listed Star Entertainment Group have plummeted more than 6%.
“Despite more prescriptive supervision that prevented the type of misconduct seen in the first inquiry, numerous shortcomings in governance, regulatory compliance, technology and risk management remain, including in areas that The Star claimed it had remediated,” said Philip Crawford, Chief Commissioner of the NSW Independent Casino Commission.
“In a casino setting, compliance breaches can have serious consequences for the community, and the Bell Report illustrated how quickly weak controls can lead to criminal infiltration and gambling harm.”
As a result of the Bell Two report, Star Casino has been issued a pecuniary fine of $15 million for the breaches to be paid in three instalments up to July next year. Additionally, The Star will also be required to follow additional financial and operational reporting requirements up until March 2025, at which point the NICC will reassess The Star’s suitability to regain its casino licence.
“The NICC understands the many challenges The Star is facing and will continue to closely monitor The Star’s progress in proving it is capable of regaining its casino licence,” said Crawford.
“The NICC is encouraged by the steps initiated since Mr McCann’s appointment… The Star CEO, Steve McCann, has established open lines of communication and cooperation with the NICC which has resulted in a much healthier relationship between the company and the regulator.
“The company is now taking the opportunity to reset its remediation priorities, strengthen its financial position and bolster the leadership team to refocus the business.”
In a statement to the ASX, a spokesperson for The Star said “[we] will continue to engage constructively with the NICC in respect of The Star Sydney and its operations while its licence remains suspended including regarding the directions above and the proposed amendments to The Star’s Sydney’s licence conditions.
“In addition, the Group’s Revised Remediation Plan (RRP) as it applies to The Star Gold Coast and The Star Brisbane (as operator of that casino) has been approved.”
The Bell Two follows one week behind Crown Melbourne being fined $2 million by the Victorian Gambling and Casino Control Commission for allowing 242 people who had self-excluded from gambling to place bets at the casino over an 8-month period up to May 2024.
“During our investigations, we observed a different Crown Melbourne emerging with a clear understanding of the privilege and obligations of holding the Melbourne Casino Licence,” said Fran Thorn, Chair of the VGCCC.
“Crown Melbourne must continue to seek to rebuild and earn public trust by demonstrating the good character, honesty and integrity that are necessary to remain a suitable casino operator.”
A final decision on whether The Star should be allowed to regain its casino licence will be made by the NSW Independent Casino Commission in March next year. The full Bell Inquiry report can be viewed here.
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