Home NewsCasino Star could face AU$100m penalty or licence cancellation over second Bell Report

Star could face AU$100m penalty or licence cancellation over second Bell Report

by
58 views 3 minutes read

The New South Wales Independent Casino Commission (NICC) has issued a warning to Star Entertainment Group it may cancel its licence in the Australian state or hand out a financial penalty over regulatory breaches identified in the second Bell Report.

Issuing a show cause notice, the NICC is seeking a response as to why it should not take disciplinary action. Star has 14 days from today (13 September) to reply, with a response expected no later than 27 September. 

The notice references the second Bell Report, the contents of which were revealed by the NICC late last month. The two volumes set out details of a disastrous operating environment at Star Sydney in NSW.

Both volumes echo conclusions from the first inquiry, delivered in 2022, in that Star is unsuitable for a licence. Star itself also admitted during public hearings for the inquiry that it was still not currently fit to operate independently. It has lobbied for conditional suitability, which Bell rejected as an invalid premise.

In its show cause notice, the NICC refers to four major breaches identified in the Bell Report. These include a fraud scheme involving a faulty cash-out machine, failure to properly vet a large number of patrons who were flagged as high-risk, and the falsification of harm minimization checks for patrons who had eclipsed three hours of continuous play.

The NICC has also issued correspondence in relation to Star’s management structure, operation and culture, which were shown to be siloed and combative. Issues with the company’s remediation plan and its implementation were also highlighted. In addition, as is the case in the report, it questions Star’ overall suitability to hold a casino licence.

What punishment could Star face?

The NICC said Star’s sanctions will depend on the response it submits to the show cause notice. However, it did set out some of the disciplinary options at its disposal, if appropriate based on the responses.

These include cancelling Star’s casino licence in NSW or issuing a financial penalty of up to AU$100m (£51.1m/€60.6m/US$67.2m). The NICC said it could also amend the terms and conditions of its licence, block certain activities and operations, or send a letter of censure to Star.

“The NICC continues to consider its response to the Bell Report including Star’s ability to obtain financial resources to ensure the financial viability of the casino,” the NICC said.

Star still seeking advice over financial position

Issuing a response, Star said it is considering the matters raised in the notice as well as in Bell Two. Star also stated it expects to provide a full response by the 27 September deadline.

In addition to the notice, the NICC asked Star to make submissions on actions being taken over the findings in Bell Two. These include its suitability to hold a licence in NSW and its remediation plan.

The NICC has also requested information about Star’s financial position and proposed plans to address these issues on an ongoing basis. This, the NICC said, would allow it to make informed decisions about Star’s financial suitability.

On this point, Star confirmed it continues to work with various stakeholders and advisers in respect of its financial position. Star last week revealed such talks after following a delay in publishing its full-year results – which saw it suspended from trading by the Australian Securities Exchange (ASX). 

“These discussions are ongoing and involve, among others, state governments, regulators and the company’s lenders,” Star said.

You may also like

About Us

On iGamingWorld, we provide in-depth analysis, the latest news and opinions from famous people of the gaming industry.

Featured Posts

Newsletter