The NSW casino authority has loaded an extra financial burden on The Star Entertainment Group (ASX: SGR) after slapping a $https://www.businessnewsaustralia.com/15 million penalty on the group in the aftermath of the Bell Two Inquiry that showed the casino operator falling behind on its remediation plan.On top of the $https://www.businessnewsaustralia.com/15 million fine, the NSW Independent Casino Commission (NICC) today also imposed several new licence conditions for the company’s Sydney casino and ordered that its licence remain suspended until the end of March next year.Philip Crawford, the NICC’s chief commissioner, says the penalty follows findings by the second Bell inquiry of ongoing compliance failures and operations at The Star which “fell far short of suitability” to hold a casino licence.“Despite more prescriptive supervision that prevented the type of misconduct seen in the first inquiry, numerous shortcomings in governance, regulatory compliance, technology and risk management remain, including in areas that The Star claimed it had remediated,” says Crawford.“Reform in the systems, policies, processes and culture that support these areas cannot be understated in a business as complex as The Star’s.“In a casino setting, compliance breaches can have serious consequences for the community, and the Bell Report illustrated how quickly weak controls can lead to criminal infiltration and gambling harm.”The NICC commissioner says he understands the “many challenges The Star is facing” and that the casino authority will continue to “closely monitor The Star’s progress in proving it is capable of regaining its casino licence”.The Star’s special manager Nick Weeks, who was appointed by the NICC in 2022 to oversee the casino’s operations, will remain in place until at least 3https://www.businessnewsaustralia.com/1 March 2025 after which the regulator will reassess the company’s suitability to regain its casino licence.The $https://www.businessnewsaustralia.com/15 million fine comes on top of the NICC hitting The Star with the $3.2 million bill for the full cost of the second Bell inquiry which revealed a state of dysfunction between the former board of the casino group and the regulator.The second inquiry conducted by Adam Bell SC earlier this year ultimately led to the resignations of former CEO Robbie Cooke and former chairman David Foster.In 2022, Bell’s first inquiry into The Star was triggered by a raft of allegations that the casino group was enabling suspected money laundering and organised crime activities through its VIP operations. Since those initial findings, Weeks has had complete control of The Star’s casino licence in NSW.The Star was also initially fined $https://www.businessnewsaustralia.com/100 million by the NICC following the first Bell inquiry in 2022 – on top of another $https://www.businessnewsaustralia.com/100 million fine by the Queensland Attorney General following the Gotterson inquiry into The Star’s Brisbane and Gold Coast operations.In announcing the latest fine, Crawford notes that The Star’s new CEO Steve McCann has established “open lines of communication and cooperation with the NICC which has resulted in a much healthier relationship between the company and the regulator”.“The NICC is encouraged by the steps initiated since Mr McCann’s appointment, and the company is now taking the opportunity to reset its remediation priorities, strengthen its financial position and bolster the leadership team to refocus the business,” says Crawford.“However, more work needs to be done before The Star can be regarded as a compliant and responsible operator, deserving of a licence.”In addition to the fine, the NICC has made directions that reflect Adam Bell SC’s report recommendations, while ordering additional financial and operational reporting from The Star between now and March 2025.The NICC is also proposing to amend The Star’s suspended casino licence to include “more prescriptive requirements around board constitution and key management personnel”.The authority has requested amendments to the Casino Control Act as recommended by Bell in his report to the NICC.Shares in The Star were placed in a trading halt this morning pending a response by the company to the NICC’s announcement today.The company’s financial fortunes have been under a cloud since the Bell inquiries were held, and more recently the focus has been on the company’s cash position.However, The Star last month struck an agreement with lenders for a new $200 million debt facility in a temporary relief plan that eased some of the financial pressure.In The Star’s belated financial results, which were released on 26 September, the company posted a $https://www.businessnewsaustralia.com/1.685 billion bottom-line loss for FY24, taking total deficits over the past two financial years to more than $4 billion.



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