Announced yesterday (19th February), the inquiry will run for 15 weeks, with a final report due by 31st May.
Adam Bell SC, who conducted the initial Bell report, will head the inquiry, examining how Star has implemented recommendations from the first investigation.
Following the announcement, Star requested a trading halt on the Australian Securities Exchange (ASX).
The operator has also confirmed it will postpone reporting its results for the first half of its 2024 financial year.
Star was scheduled to report the results on 21st February, but this has now been delayed.
The operator states it will announce a new release date in the coming days.
In response to the inquiry, Star expresses its approval of the decision from the NICC.
Star views the inquiry as an “objective forum” to demonstrate its ability to regain licence suitability in NSW, where it was deemed unsuitable to hold a casino licence in September 2022.
“Star intends to participate in the inquiry openly, transparently, and cooperatively,” it stated.
“Despite the inquiry’s expected duration of 15 weeks, a crucial period for Star in executing its multi-year remediation plan, Star will allocate all necessary resources to meet the inquiry’s requirements and expectations.
“Moreover, Star acknowledges the inquiry’s consideration of the suitability of Star Sydney to manage and operate the Star casino in Sydney.”
Additionally, Star notes the NICC’s provision of “every chance” to demonstrate its capacity to achieve suitability. Star pledges to provide all necessary information for the regulator to determine its future in NSW.
“Star appreciates the opportunity to demonstrate its ability to regain suitability,” the operator said.
“We will continue to cooperate with regulators, including the NICC and its appointed manager.
“Star remains committed to executing its remediation plan and regaining the community’s trust.”
The second Bell report will cover several key areas of focus.
In addition to examining the aftermath of the first report, the second inquiry will scrutinise Star’s culture, including its risk management culture, management, and reporting lines.
The inquiry will also assess whether Star has secured the financial resources necessary to support Star Casino.
Adam Bell SC’s initial report highlighted anti-money laundering and social responsibility shortcomings at Star Sydney over several years. A subsequent report found that the casino had implemented 22 of the 30 recommended measures from the initial report.
Ultimately, the report led to Star being deemed unsuitable for a licence in NSW.
However, Star also faces uncertainties in other states, including a similar suspension in Queensland, four class actions, and a potential AUSTRAC fine, most of which stem from connections to Chinese junket operators.
Unsurprisingly, regulatory actions have impacted Star’s financial performance.
For the 2023 financial year, Star reported a net loss of AU$2.4bn (£1.25bn/€1.46bn/US$1.57bn).
At the time, Star attributed $2.8bn of outgoings to “significant items”, including a $2.2bn non-cash impairment for Sydney, Gold Coast, and Treasury Brisbane goodwill and property assets.
Additionally, it cited regulatory and legal costs of $595m, debt restructuring costs of $54m, and redundancy costs of $16m.
These costs, offset by a positive and growing EBITDA of AU$317m, resulted in an after-tax loss of AU$2.4bn.
The impact of regulatory decisions on Star’s performance in the most recent H1 will be detailed in the delayed results announcement.