NSW Regulator Receives Final Report on The Star Sydney Inquiry

The NSW casino regulator confirmed Wednesday that it received the final report from a second independent inquiry into The Star Sydney, which will determine the fate of the property’s casino license.

On the same day, Star Entertainment Group announced the pending departure of its Group Chief Risk Officer, Scott Saunders. The NSW Independent Casino Commission (NICC) stated that Adam Bell SC, who led the inquiry, handed the report to NICC Chief Commissioner Philip Crawford, formally concluding the inquiry initiated in February.

“The NICC will now consider the contents of the report before it is made public,” the regulator explained. “The NICC’s response to Mr. Bell SC’s findings will be communicated in due course.”

This second inquiry, following an initial inquiry led by Bell two years ago, was prompted by concerns over Star’s progress in improving its culture, AML, and responsible gaming processes.

It was revealed that the relationship between Star and the NICC had deteriorated, leading to CEO Robbie Cooke and Chairman David Foster resigning after they were found to have plotted to remove Manager Nick Weeks and lobby to replace the regulator.

The inquiry also uncovered that Star had falsified records regarding welfare checks on customers gambling for more than three hours, as required by regulations.

Since the inquiry, Star has made significant efforts to address its internal issues, including appointing Steve McCann, who previously helped Crown Resorts return to suitability in Sydney and Melbourne, as its new CEO and Managing Director.

This week, Star also responded to inquiries from the Australian Securities Exchange about the unusual trading activity of its shares, which have plummeted since the original inquiry three years ago. Star stated it was unaware of any new information that could explain the recent trading but acknowledged media speculation on potential corporate activities, including takeovers.

In a recent interview, McCann commented that he did not believe a sale of Star was likely anytime soon.

Read: The Star Executives Recognize Challenges in Remediation Efforts Under Regulatory Scrutiny

Source: IAG