Australia’s Star Entertainment Group said Friday it has now lodged its response to a show cause notice issued by the NSW Independent Casino Commission (NICC) following a second finding of unsuitability to hold a casino license for The Star Sydney.
But that didn’t stop the company’s shares from plummeting 44% on the day trading resumed in the wake of Star’s FY24 results release just 24 hours earlier. Shares fell to a low of AU$0.25 by close of business with Star’s results having outlined a need for further funding to stave off collapse and a trading environment showing no signs of improving.
In a filing, Star said it had lodged its response to the Show Cause notice in respect of matters arising from the Bell Two Report.
“In addition to the Show Cause Response, the company (and The Star Sydney) have also made further submissions to the NICC in respect of several matters including, among others, The Star Sydney’s suitability to hold the Sydney casino license, progress in respect of its remediation plan, the company’s current financial position and its proposed plans to address financial issues on an ongoing basis,” it said.
As previously reported by IAG, the NICC’s show cause notice asked the embattled casino operator to explain why it should not take disciplinary action in relation to various breaches uncovered in the second Bell inquiry.
It also outlined possible disciplinary actions it could take against Star, among them cancellation of its casino licence, a pecuniary penalty of up to AU$100 million, an amendment of the terms or conditions of the licence, a requirement that a casino operator, or a close associate of a casino operator, give an undertaking (an enforceable undertaking) to do or refrain from doing something, or a letter of censure to the casino operator.
In a rare piece of positive news, Star’s also confirmed Friday that it had completed the sale of the Treasury Brisbane Casino building for AU$60.5 million.
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