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NSW regulator refrains from revoking Star’s Sydney license, cites improved relationship under new CEO Steve McCann

Ben Blaschke by Ben Blaschke
Thu 17 Oct 2024 at 10:21
10 Years Ago: The Star war

The Star Sydney

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The NSW casino regulator has refrained from revoking Star Entertainment Group’s Sydney casino license, opting instead to fine the company AU$15 million and continue to impose a raft of license conditions.

The Star’s license will remain suspended and Nick Weeks, the Manager appointed by the NSW Independent Casino Commission (NICC) to maintain oversight of The Star Sydney’s casino operations, will continue in that role until at least March 2025, the regulator said, at which time it will reassess Star’s suitability.

In a Thursday statement, NICC Chief Commissioner Philip Crawford said the second Bell inquiry identified continuing compliance failures and operations at The Star that fell far short of suitability.

“Despite more prescriptive supervision that prevented the type of misconduct seen in the first inquiry, numerous shortcomings in governance, regulatory compliance, technology and risk management remain, including in areas that The Star claimed it had remediated” Crawford said.

“Reform in the systems, policies, processes and culture that support these areas cannot be understated in a business as complex as The Star’s.

“In a casino setting, compliance breaches can have serious consequences for the community, and the Bell Report illustrated how quickly weak controls can lead to criminal infiltration and gambling harm.

“The NICC understands the many challenges The Star is facing and will continue to closely monitor The Star’s progress in proving it is capable of regaining its casino licence.”

On top of the latest AU$15 million fine imposed on Star, the NICC said it will require additional financial and operational reporting. It is also proposing to amend The Star’s suspended casino licence to include more prescriptive requirements around board constitution and key management personnel, and has requested amendments to the Casino Control Act as recommended by Adam Bell following a second inquiry into Star’s suitability held earlier this year.

While that inquiry uncovered ongoing failures by Star to address its past compliance issues as well as a breakdown of the relationship with the NICC, Crawford confirmed that the recent appointment of Steve McCann as CEO had helped mend those relations.

McCann, he explained, “has established open lines of communication and cooperation with the NICC which has resulted in a much healthier relationship between the company and the regulator.

“The NICC is encouraged by the steps initiated since Mr McCann’s appointment, and the company is now taking the opportunity to reset its remediation priorities, strengthen its financial position and bolster the leadership team to refocus the business.

“However, more work needs to be done before The Star can be regarded as a compliant and responsible operator, deserving of a licence.

“Mr Weeks will continue to hold the licence until at least 31 March 2025, thus allowing The Star to operate gaming facilities while its licence is suspended.”

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Tags: Australiacasino licenseNick WeeksNSW Independent Casino CommissionPhilip CrawfordStar Entertainment GroupSteve McCannThe Star (Sydney)
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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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