The future of Sydney’s Star Entertainment Casino remains uncertain after a second damning report found it failed to reform its culture.
The findings published by the New South Wales Independent Casino Commission (NICC) found the group failed to address a culture of unethical conduct and criminal infiltration within the struggling business.
Star Entertainment was due to post its full-year results on Friday but entered a trading halt after the report was published.
An initial report conducted by Adam Bell SC in 2022, found the Pyrmont site was unfit to hold a casino licence after evidence of money laundering and large-scale fraud.
The second inquiry was commissioned by the special investigator in February to examine whether the Star had made the “deep structural change” required to be suitable to hold a licence.
NICC Chief Commissioner Philip Crawford said the latest report showed 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,” Mr Crawford said.
“It has only very recently turned its attention to dealing with challenges that should have been prioritised earlier.”
The Star replaced its entire board and bulk of leadership since inquiries into its operations in New South Wales and Queensland.
The regulator will consider the findings, including four compliance breaches, and is due to respond in coming weeks.
Chair of the NSW Independent Liquor and Gaming Authority, Philip Crawford. (AAP: Paul Braven)
Change in leadership could save flailing Casino
Mr Crawford noted the change in leadership could redeem the embattled business but said the Bell report made it clear the regulator was still not receiving “all the facts” from Star.
“The Bell Report notes that Mr Steve McCann Group CEO, Ms Janelle Campbell Sydney CEO and Ms Jeannie Mok Group chief operating officer, bring important experience and expertise to the process of engagement with regulators and remediation and cultural transformation, which will be vital if the NICC decides that The Star should remain as the operator of The Star Casino,” Mr Crawford said.
“The level of transparency and cooperation has certainly improved since their appointments.”
“However, 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.”
The regulator will consider the findings, including four compliance breaches, and is due to respond in coming weeks.
NSW Gambling Minister David Harris said the government was committed to a “safe and responsible casino industry”.
“We await the outcome of the NICC’s consideration of the report and will work through any implications from the commission’s decision when it is made,” he said.
“Given the NICC has not yet announced its decision, it is not appropriate for the government to comment further at this time.”
Star Entertainment Group is yet to comment.
