In response to Star Entertainment Group's repeated violations of regulations detailed in the second Bell Report, the New South Wales Independent Casino Commission (NICC) has threatened to revoke the company's state licence or impose monetary penalties.
Ladbrokes betting in the Northern Territory
With the show cause notice it has issued, the NICC is trying to get an explanation for why it shouldn't punish the offender. You can expect a response from Star no later than 27 September; they have 14 days from now (13 September) to do so.
The NICC made public the findings of the second Bell Report at the end of last month, and the notification alludes to them. The two books describe in detail the terrible working conditions at Star Sydney in New South Wales.
The findings in both volumes are consistent with those of the initial investigation, which concluded in 2022 that Star did not meet the licensing requirements. In addition, Star acknowledged during the inquiry's public hearings that it was not yet ready to operate independently. Despite Bell's rejection of conditional appropriateness as an incorrect premise, it has pushed for it.
The NICC cites four serious infractions found in the Bell Report in its show cause notice. There was a fraud scheme involving a malfunctioning cash-out machine, many high-risk customers were not adequately vetted, and customers who had played nonstop for more than three hours were given fabricated harm-minimization checks.
The NICC has also sent letters regarding the ineffective and hostile management style, operations, and culture of Star. There were other issues brought to light about the company's remediation plan and how it was put into action. Along with the report's claims, it casts doubt on Star's ability to lawfully operate a casino.
How severe a penalty could Star incur?
According to the NICC, Star's punishment will be contingent upon the company's reply to the show cause notice. Nevertheless, it did outline a few disciplinary measures it could take in response to the comments, should the need arise.
Some of these measures include fining Star up to AU$100 million (£51.1 million, €60.6 million, or US$67.2 million) or revoking Star's casino licence in New South Wales. In addition to sending a letter of censure to Star, the NICC mentioned that it could modify the license's terms and conditions, prohibit specific operations, or both.
The NICC stated that it is still evaluating Star's capacity to secure funding in order to guarantee the casino's financial sustainability as part of its response to the Bell Report.
Continues to seek guidance regarding financial situation
Star responded by saying it is thinking about the issues brought up in the notice and Bell Two. Additionally, Star has promised a comprehensive answer by the deadline of September 27th.
The NICC also requested Star's input regarding the steps being taken in response to the findings in Bell Two, in addition to the notice. Among these are the repair plan and the entity's eligibility to have a licence in New South Wales.
Additionally, the NICC has asked for updates regarding Star's financial situation and its strategies for dealing with these problems moving forward. The NICC claimed that this would help it determine if Star was financially suitable.
Star has stated that it is still in the process of collaborating with a number of interested parties and advisors regarding its financial situation. Following a postponement in the publication of its full-year results—which resulted in its suspension from trade by the Australian Securities Exchange (ASX)—Star last week disclosed such discussions.
"State governments, regulators and the company's lenders are among those involved in these ongoing discussions," Star said.