The NSW Independent Casino Commission has handed The Star a $15 million fine and imposed a suite of directions and licence conditions on the Sydney casino operator in response to the Bell Two Inquiry.
The Star’s licence will remain suspended and the NICC-appointed Manager, Mr Nick Weeks, will continue to have oversight of casino operations until at least 31 March 2025, at which time the NICC will reassess The Star’s suitability to regain its casino licence.
NICC Chief Commissioner, Mr 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” Mr 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.”
In response to the Bell Two Report, the NICC has:
- imposed a $15m fine for serious breaches of four internal control manuals
- made directions that reflect Adam Bell SC’s report recommendations
- stipulated additional financial and operational reporting required between now and March 2025
- is proposing to amend The Star’s suspended casino licence to include more prescriptive requirements around board constitution and key management personnel
- requested amendments to the Casino Control Act as recommended by Mr Bell.
“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.
More information will be published on the Bell Two Inquiry webpage.