Image: Image from: The Star Casino
The Star Casino has been hit with a $15 million fine and will remain suspended after a second probe into the casino identified additional compliance failures and operational issues.
The NSW Independent Casino Commission (NICC) has imposed a series of conditions for The Star and will re-evaluate its eligibility to regain its casino licence by March 31, 2025.
NICC Chief Commissioner 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” 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,” he added.
The news of the fine and ongoing suspension comes just over a month after a casino staff member was charged with allegedly rigging several roulette games last year, and pocketing more than $ 25,000.
Compliance Failures at The Star Casino
On August 31, 2022, Adam Bell SC released his findings in The Bell Report, which concluded that The Star was unsuitable to manage a casino in New South Wales and included 30 recommendations to address various issues identified during the Inquiry.
The initial report found the Pyrmont site unfit for a casino license due to evidence of money laundering and large-scale fraud. On October 17, 2022, the NICC suspended The Star’s NSW casino license, effective September 21, and imposed a $100 million penalty. The commission also appointed Nicholas Weeks as Special Manager for a 90-day period from the suspension date.
The state’s casino commission has since expressed dissatisfaction with Star Casino’s efforts to address these issues.
A second inquiry, commissioned in February aimed to assess whether the Star had made the necessary “deep structural changes” to regain its suitability.
However, Crawford stated that the latest findings indicate little had changed.
“The Bell Report reveals a company that had not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report. It has only very recently turned its attention to dealing with challenges that should have been prioritised earlier,” Crawford said in August.
“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,” Crawford said following the second Bell inquiry.
NICC Imposes Strict Regulations on The Star
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 Bell.
The Star’s licence will remain suspended with NICC-appointed Manager Nick Weeks overseeing casino operations until at least 31 March 2025, when the suitability for regaining the licence will be reassessed.
“More work needs to be done before The Star can be regarded as a compliant and responsible operator, deserving of a licence,” Crawford said.
The current licence will allow The Star to operate gaming facilities while suspended.
Additionally, The Star’s shares have been suspended on the ASX while it evaluates its response to the NICC.
You May Also Like
Leave a Reply