The New South Wales Independent Casino Commission (NICC) has launched its second investigation into The Star Sydney, and as was the case with the first inquiry in 2022, Adam Bell SC will be in charge of the investigation. In light of the inquiry, the Star Group announced on Monday that the trading of The Star Entertainment Group Limited shares has been put into a temporary halt.
As previously reported by Casino Guardian, the first investigation resulted in the issuing of the Bell Report, which outlined a number of breaches by The Star Sydney that had ultimately led to the casino enabling money laundering and other criminal activities. As a result of these findings, The Star Sydney was stripped of its gambling licence on October 21st 2022, and was forced to pay a fine of AU$100 million, which set a financial penalty record that no other NICC licensee has had to face to date. Moreover, The Star was able to continue casino operations strictly under the watchful eye of independent manager Nicholas Weeks. He was appointed by the NICC and will remain in his position until the NICC can definitively determine whether The Star will be able to meet its remediation goals.
The NICC Does Not Consider The Star’s Current Progress to Be Satisfactory
Apart from requiring The Star to pay the aforementioned financial penalty, the NICC also mandated that The Star Sydney needed to undertake substantial corporate changes in order to restore its eligibility to hold a licence. This also necessitated a change in management, with last month seeing the appointment of Janelle Cambell and Daniel Finch, who serve as chief executive officers of The Star Sydney and the company’s Brisbane branch, respectively.
Prior to these changes, 2022 was the year when Robbbie Cooke assumed the role of group CEO. In addition, it was in August 2023 that The Star made it clear that 22 of the 30 remediation requirements have been met.
According to NICC Chief Commissioner Philip Crawford, however, the inquiry was prompted precisely by The Star’s failure to implement remediation measures at a pace that the NICC could see as sufficient. It follows two extensions of the term of Nicholas Weeks, with the second one having begun in December 2023 and set to end this June. Mr Crawford specifically pointed to the worry that, as opposed to The Star’s reform agenda, any remediation progress achieved thus far could potentially be seen as the result of Mr Weeks’ supervision.
The Regulator’s Investigation Will Last Several Months
Named “Bell Two”, the inquiry will follow the first Bell Report and reexamine The Star’s eligibility to hold a licence within the territory of Sydney and what steps the casino is taking to remedy its situation. As outlined in the NICC’s announcement, the investigation is set to last until May 31st 2024, and each hearing will be filmed and, eventually, made available to the public.
Mr Crawford added that “there is much at stake for The Star,” and that the company has “every” opportunity to prove that it is fit to hold an NICC licence. He also noted that among the requirements are ones related to The Star’s monetary obligations, as well as the funding of the remediation program undertaken by the company.
- Author
Daniel Williams
