As announced by the New South Wales Independent Casino Commission (NICC) on July 31st, Adam Bell SC has officially submitted the report of his second inquiry into The Star. While the report’s contents have not yet been officially revealed, there are concerns that The Star might yet again be deemed unfit to retain a licence.
The news of the report’s submission led to The Star’s share prices taking a hit of 1.7%, as reported by the Capital Brief, with the said percentage eventually reaching 2.5%, according to the Brisbane Times. The Star made an ASX Announcement on Thursday regarding media speculation surrounding the report and stressed that the company has not yet been handed a copy.
The Star’s regulatory issues date back to 2022, when anti-money laundering violations prompted the NICC to launch an investigation into its conduct. Led by Adam Bell SC, the probe resulted in The Star no longer being considered fit to hold a licence, and the company was also handed a fine of AU$100 million. Mr Bell SC also helmed the NICC’s second inquiry, and as established, this Wednesday marked its conclusion.
Recently, The Star was also rocked by malfunctions that warranted the temporary shutdown of all of the gaming machines and electronic table games in The Star Brisbane, The Star Sydney, and The Star Gold Coast. The problems were the result of complications associated with an update meant to prepare the equipment for carded play and were rectified within several days.
Low Confidence in The Star’s Full Recovery
Wednesday’s news was accompanied by an announcement of the resignation of Scott Saunders, The Star’s Chief Risk Officer. Mr Saunders will continue to hold the position for a further six months, and he is set to depart from the company by the end of January 2025. Additionally, he will cease serving as director of all relevant subsidiary companies once January 31st, 2025, rolls around.
The announcement was made around a month after Steve McCann, former Chief of Crown Resorts, was appointed as Group CEO of The Star, and he commenced his duties on July 8th. Earlier, Anne Ward succeeded David Foster as Board Chairman after it was revealed Mr Foster and former CEO Robbie Cooke had made concerning remarks regarding the NICC.
Suffice it to say, the Star has undergone a range of leadership changes this year. Whether this will prove enough to turn the company around anytime soon, however, appears to be unclear judging from investors’ negative reaction to the Bell Two’s submission.
Concerns regarding its future were further fuelled by the final submissions of Counsel Assisting Caspar Conde, which spelt an uncertain future for the gambling giant. Although they were published in May, they continue to spark unease due to Mr Conde’s harsh assessment of the Star. Based on the company’s then state, Mr Conde was less than confident in The Star’s suitability for a licence, and he further said that there was “no basis in the evidence to discern a future time by which the inquiry can be satisfied that The Star and Star Entertainment are likely to become suitable.”
- Author
Daniel Williams
