The regulator in New South Wales has taken the next steps against Star Entertainment, as it issued a notice to the firm to state its case as to why action shouldn’t be taken off the back of the second Bell Report.
Four key elements of the findings were pinpointed as shortcomings for The Star as the group looks to cement a future after a period of significant turbulence.
The regulator took aim at the lack of urgency from The Star as the operator had been slow-moving and “only very recently” looked to deal with some of the challenges that should have been dealt with earlier.
A filing by the operator stated: “The Star expects to respond to the Notice by Friday 27 September 2024.“The Star is currently considering the matters raised in the Notice, the additional requests by the NICC as well as the Bell Two Report.
“The Star is continuing to work with various stakeholders and advisers in respect of its financial position. These discussions are ongoing and involve, among others, state governments, regulators and the company’s lenders.”
According to the regulator, the second Bell Report served to “validate the concerns that prompted the second inquiry”, it led to disruption for The Star with the group postponing the release of its fiscal year 2024 financial results and requesting the trading halt from the ASX.
NICC Chief Commissioner, Philip Crawford, stated when the second Bell report was released earlier in the month: “The Bell Report reveals a company that had not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report.
“It has only very recently turned its attention to dealing with challenges that should have been prioritised earlier.”
Upon The Star receiving the report, the ASX issued a market announcement for the group stating that its securities will be placed in a trading halt at the company’s request.
Although the group has failed to repair problems within the company’s compliance to certain regulations, the latest Bell Report did suggest that recent company changes have resulted in improvements.
Crawford continued: “The Bell Report notes that Steve McCann Group CEO, Janelle Campbell Sydney CEO and Jeannie Mok Group COO, bring important experience and expertise to the process of engagement with regulators, remediation and cultural transformation which will be vital if the NICC decides that The Star should remain as the operator of The Star Casino.
“The level of transparency and cooperation has certainly improved since their appointments. However, the Bell Report underscores the NICC’s concerns that it was not receiving all of the facts from The Star at a time when we needed certainty the company could fund and prioritise an urgent business turnaround.”
