The NSW Independent Casino Commission (NICC) has imposed a A$15m (€9.24m) fine on Star Entertainment Group for the shortcomings identified in the second Bell Report.
Despite being once again deemed unsuitable by the state parliament’s investigation into its regulatory failures, the troubled Australian casino chain will retain its licence. However, the licence remains suspended until required reforms are completed, with the NICC set to reassess Star’s suitability by 31 March 2025.
In a statement to the ASX, Star Entertainment said: “The Group will continue to engage constructively with the NICC regarding The Star Sydney and its operations while the licence remains suspended, including on the directions provided and the proposed amendments to The Star Sydney’s licence conditions.”
Prior to making this announcement, Star halted trading, which has now resumed, leading to a slight increase in its share price to A$0.28.
The NICC also issued new governance and operational directives to The Star Sydney under the Casino Control Act 1992 and proposed updated licence conditions relating to key management and board composition.
In Queensland, Star’s Revised Remediation Plan was approved by the Office of Liquor and Gaming Regulation (OLGR), subject to requirements around budgeting, funding, monitoring, and oversight. Star will need to consult with the OLGR, its special manager, and external advisor, and publish an overview of the plan once consultations are complete.
Star commented: “The Star looks forward to continuing constructive engagement with both the NICC and OLGR, along with its other stakeholders, as it embeds sustainable remediation across the Group and works toward a viable pathway to suitability.”
In addition to the NICC fine, analysts expect the group to face further enforcement action from Australia’s AML authority, AUSTRAC.
These regulatory challenges come as Star assesses its unstable financial position, following an agreement last month with lenders for A$200m in new debt across two tranches. The company reported a net loss of A$1.69bn for the financial year ending 30 June 2024, largely due to a A$1.44bn write-down caused by difficult trading conditions and ongoing regulatory issues.
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