The Star Entertainment Group has again been found unsuitable to hold a casino licence in New South Wales for its Sydney venue, according to trade publication Casino.org. The finding came from the 2024 Independent Inquiry Into The Star, the second state government probe into whether the company should hold the licence.
The inquiry was again led by Adam Bell SC, who reported to the NSW Independent Casino Commission (NICC). According to the report of his findings, The Star failed to implement recommendations from the 2022 inquiry. That earlier inquiry found the casino non-compliant with anti-money laundering requirements, and Casino.org also reports it found evidence of widespread fraud.
What the inquiries found
In the 2022 inquiry, Mr Bell determined that Star Sydney had failed to protect the casino from being used by criminal triad gangs across Asia to launder money through private high-roller junket rooms. Following that inquiry, the NICC appointed a government monitor and imposed a pecuniary penalty of AU$100 million. The 2022 report made 30 recommendations.
Casino.org reports that Mr Bell found The Star's leadership and board became combative after the 2022 outcome and threatened a lawsuit against it. By contrast, the publication says Crown Resorts, which faced similar accusations in a separate NSW inquiry, took remedial steps immediately. The 2024 inquiry found that meaningful change at The Star came only recently, after the departures of the then chief executive and chair David Foster.
"The Bell Report reveals a company that has not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report," said NICC Chief Commissioner Philip Crawford.
Mr Crawford also said the company had only "very recently" turned its attention to challenges that should have been prioritised earlier.
Signs of improvement and what happens next
Mr Crawford noted improvements in regulatory compliance since the appointment of new executives. Steve McCann became group CEO in late June, Jeannie Mok became group CFO in late May, and Janelle Campbell became CEO of The Star Sydney in January. "The level of transparency and cooperation has certainly improved since their appointments," he said.
The NICC is considering its next steps for the future of the operator, which Casino.org describes as suspended. The publication reports that Star Sydney's nearly 2,000 poker machines and 140 table games remain in operation for the interim. The NICC has not said what outcome it will pursue, and the source material does not set out a timeline for a decision.
Casino.org says Star Sydney holds the state's only poker machine licence. It describes the integrated resort, which opened in 1995, as the second-largest casino in Australia behind Crown Melbourne.
Market and business context
The report was released two days after The Star opened its AU$3.8 billion Queens Wharf development in Brisbane. The company also operates The Star Gold Coast in Queensland.
The Star successfully asked the Australian Securities Exchange to halt trading in its shares after the Bell findings. The company was due to release its annual financial results on Friday but requested more time to formulate guidance. According to the report, trading will resume next week.
The source does not detail the specific conduct examined in the 2024 inquiry beyond the unimplemented recommendations, and it does not say whether The Star intends to challenge the finding.