The suitability of The Star Sydney to hold a casino license will again come into focus after the NSW Independent Casino Commission (NICC) on Monday announced it will hold a second inquiry amid concerns over the effectiveness of Star’s remediation efforts.
In a move that is said to have caught Star Entertainment Group off guard, Adam Bell SC will again lead the inquiry barely 18 months after he originally recommended Star be found unsuitable following a previous inquiry held in 2022.
The second inquiry will start immediately and run for 15 weeks, with a final report to be submitted to the NICC on 31 May 2024 – before the term of the independent manager appointed to oversee Star’s remediation efforts expires in June.
Explaining why a second inquiry was needed, NICC Chief Commissioner Philip Crawford said there was a “substantial shift required and The Star has had 18 months to demonstrate that it has the capability and resources to regain its casino licence.”
However, he noted that the then regulator had not been satisfied with Star’s progress on remediation when it previously extended the independent manager’s term in December.
“The NICC has had concerns about the extent that remediation is attributable to the manager’s oversight and direction versus what is being driven by The Star’s reform agenda,” Crawford said.
“Bell Two will bring us back to the Bell Report and The Star’s efforts to regain its casino licence in the shadow of that report.
“There is much at stake for The Star, so the NICC is giving the casino every chance it can to demonstrate whether it has the capacity and competence to achieve suitability.
“This includes meeting its financial obligations under the casino licence and funding its remediation program sufficiently.
“The inquiry will provide the NICC with the information needed to make an important decision for The Star, its employees, its stakeholders and the wider community.”
Star entered a trading halt late Monday morning in the wake of the NICC’s announcement.
The initial Bell Report detailed a wide range of reasons for finding The Star unsuitable – among them the illegal use of China UnionPay cards to fund gambling at The Star Sydney, Star’s dealing with Asian junket operator Suncity Group and the company’s response to independent audits of its anti-money laundering (AML) and counter terrorism financing (CTF) controls.
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