Star Entertainment Group has requested a trading halt on the Australian Securities Exchange (ASX) after a second investigation into the operator found ongoing regulatory issues.
Adam Bell, a lawyer appointed by the NSW Independent Casino Commission (NICC), conducted the first investigation into the Australian casino operator in 2022. His report found “serious regulatory failures” and stated that the company was “unsuitable to hold a casino license”.
As a result of these findings, Bell was appointed to conduct a second investigation into The Star, which was completed on 31 July 2024. Almost a month later, the findings were shared with the company before being made publicly available.
A statement released by the NICC said Bell’s second report “confirmed the concerns that led to the second investigation”. As a result, The Star was forced to delay the publication of its financial results for the 2024 financial year and request a trading halt on the ASX.
The statement cited “four instances of non-compliance” and noted that the regulator was “acting within its established process”.
NICC Chief Commissioner, Philip Crawford, stated: “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 prioritized earlier.”
Following the Star’s report, the ASX issued a market announcement to the group stating that it would suspend trading of its securities at the company’s request.
While the group has failed to resolve some of its compliance issues, the latest Bell report noted that recent changes at the company had led to some 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 prioritize an urgent business turnaround.”
Crawford concluded: “The NICC is responsible for regulating an industry that is highly vulnerable to criminal infiltration and we are tasked with setting regulatory standards that meet the community’s expectations.”
On Monday morning Star shares were suspended from trading after the company failed to publish its financial report on Friday’s deadline.
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