NICC fines The Star and extends Sydney casino licence suspension
The NSW Independent Casino Commission’s appointed manager will continue to have oversight of casino operations.
Australia.- The New South Wales Independent Casino Commission (NICC) has decided to extend the suspension on The Star Entertainment’s casino licence in the state. It has also fined the casino operator AU$15m (US$10m). Meanwhile, Nicholas Weeks will remain in place as the NICC-appointed manager until at least March 31, 2025, when the regulator will reassess The Star’s suitability to regain its casino licence.
The NICC has also required the company to submit additional financial and operational reports between now and March 2025. It also proposed more prescriptive requirements on the constitution of the board of directors and key management personnel.
According to NICC chief commissioner Philip Crawford, “Bell Two” identified continuing compliance failures at The Star. Crawford said: “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.
“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. The Star CEO, Steve McCann, 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.”
See also: The Star results: revenue down 10%
The Star’s response
The Star Entertainment Group issued a company filing shortly after the NICC’s announcement. The company said it will “continue to engage constructively with the NICC in respect of The Star Sydney and its operations while its licence remains suspended including regarding the directions above and the proposed amendments to The Star Sydney’s licence conditions.”
