The Star Casino Group Suspended From Trading in Australia

September 2, 2024 Australia Casino & Hotel

The Australian Securities Exchange (ASX) has suspended trading of The Star Entertainment Group’s securities following the company’s failure to release its annual financial report by its August 30, 2024 deadline. The suspension was requested by The Star on Friday, August 30, after the New South Wales Independent Casino Commission (NICC) released a critical report about its Sydney operations.

The NICC’s latest report, known as the Bell Report, declared The Star unsuitable to regain its Sydney casino license. This follows previous findings in 2022, which also deemed the company unfit to hold a license due to significant regulatory failures. The NSW state government had previously imposed AU$100 million (US$68.1 million) in fines on The Star for these issues.

NICC Chief Commissioner Philip Crawford expressed concerns that The Star had not addressed governance and cultural issues promptly. The report highlighted that while recent changes in management, including new appointments such as Group CEO Steve McCann and Sydney CEO Janelle Campbell, showed some progress, significant doubts remain about the company’s transparency and ability to operate under less regulatory supervision.

“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 prioritise an urgent business turnaround,” NICC chief commissioner Philip Crawford was quoted as saying in a September 2, 2024 report published by News.com.au.

“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.

“It was unclear whether The Star could feasibly operate under less supervision, when it was exhibiting past behaviours with its licence still suspended.”

The Star’s board has agreed to cover the AU$3.2 million (US$2.1 million) cost of the Bell Inquiry. The ASX suspension will remain until the market decides otherwise or until The Star makes a further announcement. It is unclear when trading will resume.

The NICC is still reviewing the Bell Report’s findings and their implications for The Star, which is a 50 percent partner in the Destination Brisbane Consortium that built the Queen’s Wharf.