2024 Independent Inquiry into The Star
In February 2024 the NICC appointed Adam Bell SC to undertake an independent inquiry into The Star’s suitability.
Response to the Bell Report
On 17 October 2024, the NICC announced its response to the Bell Report.
NICC Response
The NICC determined to take disciplinary action against The Star under section 23 of the Act in the form of a pecuniary penalty in the order of $15 million.
In making its decision, the NICC had regard to the findings in the Bell Report and the submissions made by The Star in response to the Show Cause Notice issued on 13 September 2024 regarding the specific breaches identified the Report and the Act.
In addition, the NICC will apply other regulatory tools available under the Act, to ensure that The Star takes appropriate action to address the Report’s findings in relation to the areas of governance, regulatory compliance and risk management. The NICC has:
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made directions under section 29(1) of the Act that reflect Mr Adam Bell's reccomendations and require The Star to take steps related to the operation of certain committees, as well as The Star’s enhanced customer due diligence process.
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proposed new conditions on The Star’s suspended casino licence in relation to the independence and governance of The Star’s Board, as well as other requirements in relation to key personnel.
- requested amendments to the Casino Control Act as recommended by Mr Bell.
The NICC intends for the Manager to remain in place at The Star until at least the end of the current term on 31 March 2025.
The NICC’s proposed action is not intended to limit or exclude any of the powers or duties of the NICC under the Act and the NICC reserves the right to issue further directions or impose additional licence conditions in relation to the Report.
Read the media release.
Read the Bell Report
Receipt of the Bell Report
The report on the 2024 Independent Inquiry into The Star was provided to the NICC 31 July, as scheduled. Mr Adam Bell SC handed the report to NICC Chief Commissioner, Philip Crawford, formally ending the Inquiry. The NICC will consider the contents of the report before it is made public. The NICC's response to Mr Bell SC's findings will be communicated in due course.
Manager extension
The NICC requested an extension of the independent manager to ensure The Star could remain operational, under appropriate oversight, until such time as the NICC issues a decision in response to the Bell Inquiry Report. Mr Weeks' appointment was due to expire 30 September 2024 and has been extended until 31 March 2025, unless terminated earlier by the NICC. Mr Weeks was initially appointed on 17 October 2022 and was extended a further four times while the NICC considered whether The Star should be permitted to return to gaming in accordance with the provisions of its casino licence.
About the Inquiry
The Inquiry was commissioned by the NICC under section 143(1) and 143A of the Casino Control Act 1992. It began 19 February and was initially set to run for 15 weeks with Mr Bell's report due to the NICC on 31 May.
On 20 March, Mr Bell notified the NICC that it was in the public interest to hold the majority of the hearings publicly. Mr Bell requested an extension and the NICC agreed to move the due date for the final report to 31 July 2024. The Star Manager, Mr Weeks, was extended by way of regulation from 30 June to 30 September 2024, to accommodate the longer Inquiry and allow the NICC time to consider Mr Bell SC's report.
On 31 August 2022, Adam Bell SC published his review of The Star Pty Ltd (The Star), following an inquiry under the Casino Control Act 1992 (NSW) (the Bell Review). The findings included serious misconduct and compliance failures including with internal control manuals, misleading and deceptive conduct and a corporate culture that fell significantly short of what was expected. The Bell Review found that The Star was unsuitable to be concerned in or associated with the management and operation of a casino in NSW.
Following the Bell Review, the NICC suspended the Star’s licence indefinitely and appointed Nick Weeks as independent manager, to give The Star an opportunity to demonstrate that it was suitable or was capable of reaching suitability within a reasonable time. Mr Weeks was appointed for an initial 90 days; however, his term was extended twice by way of regulation. Mr Weeks was appointed with full control of the casino licence and the power to discharge the obligations of that licence.
When the manager was extended in December 2023, the NICC was not satisfied The Star was progressing its remediation in a timely fashion. The NICC decided to conduct a rigorous investigative inquiry to give The Star a chance to demonstrate its suitability or future prospects for suitability to hold a casino licence. The Inquiry will assess The Star’s commitment to its reform agenda in a fair and forensic manner, providing the NICC with the information needed to make an important decision for the casino, its employees and the community.
The manager’s term was due to expire 30 June this year, however the NICC has extended this term to 30 September 2024 to accommodate the 31 July completion date for the Inquiry. The NSW managership is a regulator appointed role, made under legislation, that can be extended and adjusted to support the NICC’s decision making and allow continued casino operations during a licence suspension or cancellation. Mr Weeks’ continued managership is essential to enable Star Sydney to remain operational while the Inquiry is conducted and the NICC considers Mr Bell’s report.
The NICC’s costs are funded through the casino supervisory levy. The casino supervisory levy is an annual fee paid directly to the NICC by NSW’s two casinos.
Transcripts and recordings
Full transcripts for all public hearings are available below. Video recordings can be downloaded via the link.
Witness lists
- Anne Ward, Director, The Star Entertainment Group (continuing)
- Deborah Page AM, Director, The Star Entertainment Group
- Michael Issenberg, Director, The Star Entertainment Group
- Peter Hodgson, Director, The Star Entertainment Group
- Toni Thornton, Director, The Star Entertainment Group
- Elizabeth Arzadon, Managing Director, Kiel Advisory Group
- Dr Attracta Lagan, Principal, Managing Values
- Neale O’Connell, Interim Chief Financial Officer, The Star Entertainment Group
- Sebastian Hams, Partner, KordaMentha
- Scott Saunders, Chief Risk Officer, The Star Entertainment Group
- Nicola Burke, Chief Transformation Officer, The Star Entertainment Group
- David Foster, Executive Chair, The Star Entertainment Group
- Robbie Cooke, former CEO and Managing Director, The Star Entertainment Group
- Anne Ward, Director, The Star Entertainment Group
Opening Address by Counsel Assisting
Witnesses
1. Nicholas Weeks, Manager, Star Sydney
2. Christina Katsibouba, former Chief Financial Officer, The Star Entertainment Group
3. George Hughes, former Chief Customer and Product Officer, The Star Entertainment
Group
4. Betty Ivanoff, former Chief Legal Officer, The Star Entertainment Group
5. Nawal Silfani, former Company Secretary, The Star Entertainment Group
6. Dr Attracta Lagan, Principal, Managing Values
7. Ron Wagemans, Patron Liaison Manager, Star Sydney
8. Eileen Vuong, Head of Risk, Star Sydney
9. Peter Humphreys, Interim COO, Star Sydney
10. Rav Townsend, Chief Controls Officer, The Star Entertainment Group
2024 Independent Inquiry into The Star - Terms of Reference
The Star Pty Ltd
1. The suitability of The Star Pty Limited (The Star) and its close associate, The Star Entertainment Group Limited (TSEG) to be concerned in or associated with the management and operation of The Star Casino.
2. The Inquiry will have regard to:
2.1 the report and recommendations of the inquiry under the Casino Control Act 1992 (NSW) by Adam Bell SC in 2022 into The Star and its close associates (the Inquiry), and
2.2 the response of The Star and TSEG to the report and recommendations of the Inquiry.
3. The inquiry is to include consideration of:
3.1 the culture of The Star and TSEG, including risk management culture;
3.2 whether The Star has or is able to obtain financial resources that are both suitable and adequate for ensuring the financial viability of The Star Casino;
3.3 The Star and TSEG’s management and reporting lines;
3.4 compliance by The Star with its internal control manuals numbered 3, 11 and 12.
4. Scope of the inquiry – the period following the date of the report of the Inquiry until the conclusion of this Inquiry.
Instrument of appointment
Procedural guidelines for the public hearings
Casino Control Act 1992 (NSW)
Royal Commissions Act 1923 (NSW)
INQUIRY UNDER SECTION 143 OF THE CASINO CONTROL ACT 1992 (NSW)
Procedural Direction: Closing Submissions
1. Closing submissions will commence on Monday 13 May 2024. For the period of the closing submissions, hearings will be conducted from 10 am to 1 pm and then from 2 pm to 4 pm, with no afternoon adjournment. There will be no hearings on Friday 17 May 2024.
2. Counsel Assisting should provide an indicative list of topics to be addressed in submissions in public hearings to the Solicitors Assisting by 5 pm on Wednesday 8 May 2024. The Solicitors Assisting will distribute this list to all persons with leave to appear and to all other persons who have been called to give evidence at public hearings of the Inquiry.
3. Closing submissions will commence with submissions from Counsel Assisting on Monday 13 May 2024, first in public hearings and then in private hearings, so will involve submissions on all topics.
4. The Inquiry will then invite closing submissions from other persons who have been given leave to appear and from any other persons who were called to give evidence at the public hearings of the Inquiry, first in public hearings and then in private hearings if necessary.
5. Closing submissions from other persons will commence not before Wednesday 15 May 2024.
6. Closing submissions will be invited first from the Manager, then from The Star Entities and then from other persons who were called to give evidence at public hearings of the Inquiry in the order in which they were first called to give evidence. Any closing submissions from Mr Cooke will be not before Monday 20 May 2024.
7. After all other persons have completed their closing submissions, the Inquiry will invite Counsel Assisting to provide closing submissions in reply, to commence not before Wednesday 22 May 2024.
8. Closing submissions may be in whatever form the person chooses, either oral or in writing or a combination of both. However any written submissions must be provided to the Solicitors Assisting by no later than 30 minutes before the time at which the person commences oral closing submissions.
9. Any person who wishes to provide written closing submissions only must provide their written submissions to the Solicitors Assisting by 5 pm on Friday 17 May 2024.
10. No written submissions received after the times specified above will be accepted or considered by the Inquiry other than in exceptional circumstances.
11. All written closing submissions ( other than submissions relating to the financial viability or suitability of The Star) which are received by the times specified above will be distributed by the Solicitors Assisting to all other persons with leave to appear and to all other persons who have given evidence at public hearings of the Inquiry. Submissions relating to the financial viability or suitability of The Star will only be distributed to The Star Entities and to the Manager.
Adam Bell SC
2 May 2024
Conclusion of hearings and closing submissions
The hearings of the Inquiry concluded on 22 May 2024.
Contact information
For media enquiries: lauren.gumbs@nicc.nsw.gov.au or call 0436 942 040.
For general enquiries: office@nicc.nsw.gov.au