The second Bell inquiry into The Star's Sydney casino has delivered its report to the regulator, as the operator lost another senior executive on the same day.
In an update on Wednesday, the NICC said it will "consider the contents of the report before it is made public". The regulator said its response to the recommendations "will be communicated in due course". The report's findings and recommendations have not been disclosed, and the source material does not say when they will be released.
Background to the inquiry
The inquiry, known as Bell Two, was launched in February. According to the source, it stemmed from a perceived lack of remediation progress after the first Bell inquiry in 2022. At that time Star was deemed unfit to hold its NSW licence.
Star Sydney has since operated under a state-appointed manager, Nick Weeks. His term has been extended several times and currently runs through September.
Star's former chairman David Foster and former CEO Robbie Cooke have both left since Bell Two began. According to the source, public hearings during the inquiry brought to light several compliance issues and a hostile relationship between Star and the NICC. In its closing remarks, the company asked for a third chance at suitability and a further extension for the manager.
In June, Star appointed Steve McCann as CEO and managing director. The source describes him as a respected executive who helped guide Crown Resorts through its 2022 sale to Blackstone Group.
What the regulator could do
The source says the NICC could give Star another opportunity to right itself. It could also revoke the licence, which would open up what the source calls "a host of other possibilities". It does not say which outcome is more likely, and the regulator has not signalled a decision.
Chief risk officer resigns
In a filing to the Australian Securities Exchange on Wednesday, Star announced that chief risk officer Scott Saunders had resigned. He was appointed in February 2023 and will remain with the company through 31 January 2025. The source does not give a reason for his resignation.
Acting CEO Neale O'Connell wrote in the filing:
"I want to thank Scott for his dedication and commitment to The Star during a difficult and transformative period and wish him well in his future endeavours."
The source describes Saunders' exit as the latest in a "C-suite carousel" over the past three years. Besides Foster and Cooke, the company has lost former CFO Christina Katsibouba, Gold Coast CEO Jessica Mellor, chief customer officer George Hughes and several others. The source does not explain why O'Connell is described as acting CEO in the filing when McCann's appointment was reported in June, and it does not give McCann's start date.
What remains unknown
The contents of the Bell Two report, the NICC's timetable and any decision on Star's licence have not been made public. The source does not say what the departing risk chief's role will mean for the company's compliance program. This story concerns the licensing of a land-based casino. Online casino services remain prohibited in Australia under the Interactive Gambling Act 2001.