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The Star Sydney’s casino license in limbo as final report from second inquiry handed to regulator

Ben Blaschke by Ben Blaschke
Thu 1 Aug 2024 at 05:50
The Star Sydney’s casino license in limbo as final report from second inquiry handed to regulator

The Star Sydney

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The NSW casino regulator confirmed Wednesday that it had received the final report from a second independent inquiry into The Star Sydney that will ultimately determine the fate of the property’s casino license.

On a day in which Star Entertainment Group also announced the pending departure of its Group Chief Risk Officer Scott Saunders, the NSW Independent Casino Commission (NICC) said Adam Bell SC, who led the inquiry, handed the report to NICC Chief Commissioner Philip Crawford, formally ending the inquiry which was initiated in February.

“The NICC will now consider the contents of the report before it is made public,” the regulator explained. “The NICC’s response to Mr Bell SC’s findings will be communicated in due course.”

The second inquiry, which followed an initial inquiry also led by Bell two years earlier, was called amid concerns that Star was not making sufficient progress in its remediation progress around improving its culture, AML and responsible gaming processes.

It was subsequently revealed that the company’s relationship with the NICC had broken down, with CEO Robbie Cooke and Chairman David Foster ultimately falling on their swords amid revelations they had had plotted to remove Manager Nick Weeks and lobby to replace the regulator entirely.

The inquiry also revealed evidence that Star had falsified records in regard to welfare checks on customers seen gambling for more than three hours at a time, as required under current regulations.

Since the inquiry, Star has taken significant steps to address its internal issues – most notably by way of appointing Steve McCann, who played a key role in helping local rival Crown Resorts return to suitability in Sydney and Melbourne, as its new CEO and Managing Director.

Star this week was also forced to respond to inquiries from the Australian Securities Exchange regarding unusual trading activity of the group’s shares, which have plummeted since the original inquiry was called three years ago.

Star said it was not aware of any information that has not been previously announced to the market which could explain recent trading in Star securities but noted recent media articles speculating on potential corporate activity, including takeovers, involving the company.

McCann commented in a recent interview of his own that he did not think it likely Star could or would be sold any time soon.

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Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

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