The National Independent Casino Commission (NICC) revealed yesterday (19th February) that an inquiry is set to unfold over a period of 15 weeks, culminating in a final report due by 31st May.
Adam Bell SC, who spearheaded the inaugural Bell report, shall oversee this investigation, scrutinising Star’s adherence to recommendations outlined in the initial inquiry.
Following this proclamation, Star promptly petitioned for a trading cessation on the Australian Securities Exchange (ASX).
Furthermore, the entity confirmed a deferment in presenting its first-half 2024 financial year results.
Originally scheduled for tomorrow (21st February), this announcement’s unveiling shall be postponed, with an updated release date forthcoming.
In response to the forthcoming inquiry, Star conveyed its endorsement of the NICC’s resolution. Expressing its view that the inquiry will provide an impartial platform, Star aims to illustrate its capability to regain suitability for a casino license in New South Wales (NSW).
This assertion comes subsequent to its designation as unsuitable to hold such a license in September 2022.
“We intend to participate openly and transparently in the inquiry,” Star remarked. “Acknowledging the critical juncture coinciding with the 15-week inquiry period, we are committed to furnishing all necessary resources to meet its demands.”
Moreover, Star underscored the inquiry’s scope, particularly its evaluation of Star Sydney’s suitability for managing and operating the casino.
It noted the NICC’s apparent inclination to afford ample opportunity for Star to prove its compliance with regulatory standards.
With regards to the forthcoming Bell report, several pivotal areas will be scrutinised. Beyond assessing the aftermath of the initial report, the second inquiry will delve into Star’s organisational culture, encompassing risk management practices and managerial structures.
Additionally, it will evaluate Star’s ability to secure the requisite financial backing for Star Casino.
Adam Bell SC’s preliminary report highlighted instances of anti-money laundering deficiencies and lapses in social responsibility at Star Sydney, spanning over multiple years.
Despite implementing 22 out of 30 recommended measures from the first report, Star’s suitability for a license in NSW was rescinded, precipitating a cascade of challenges including regulatory embargoes in other states and potential financial penalties.
The ramifications of regulatory interventions have evidently taken a toll on Star’s financial performance.
For the fiscal year 2023, Star incurred a net loss of AU$2.4bn, attributing $2.8bn in outflows to “significant items” including regulatory fines and impairment costs.
Details concerning the impact of regulatory actions on Star’s performance in the latest H1 will be disclosed in the postponed results announcement.