Once more, it has been determined that the Star Entertainment Group of Australia is not qualified to possess a gaming permit in New South Wales (NSW) for its Sydney operation.

This week, the 2024 Independent Inquiry Into The Star—the second government investigation in the state to evaluate The Star's eligibility for a casino license in NSW—came to the conclusion that the company is still unfit to manage gaming operations at The Star Sydney. The integrated resort, which debuted in 1995, is Australia's second-biggest casino, after Crown Melbourne of competitor Crown Resorts.

Adam Bell SC led the 2024 investigation once more. Bell informed the New South Wales Independent Casino Commission (NICC) that The Star had neglected to follow up on recommendations from the 2022 investigation, which had discovered evidence of massive fraud and the casino's noncompliance with anti-money laundering laws.

"The Bell Report reveals a company that has not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report. It has only very recently turned its attention to dealing with challenges that should have been prioritized earlier,” said NICC Chief Commissioner Philip Crawford.

The only license for slot machines, also known as poker machines or pokies in Australia, is owned by The Star Sydney. Crown Sydney is therefore limited to offering dealer games and computerized table games.

Two days have passed since The Star's AU$3.8 billion (US$2.5 billion) Queens Wharf in Brisbane, Queensland, opened. This is when the Bell report was released. In Queensland, The Star also operates The Star Gold Coast.

Next Actions

Crawford stated that the NICC is thinking about what to do next for the casino operator that has been suspended. For the time being, Star Sydney's 140 table games and roughly 2,000 slots are still open.

Bell found in his 2022 investigation that The Star Sydney had not taken the necessary precautions to prevent criminal triad gangs operating throughout Asia from using the casino to launder illicit funds in exclusive, high-roller junket rooms.

Crown, which was accused of identical things in a different NSW investigation, responded quickly to make amends and comply with the investigation's conclusions. However, Bell claimed that The Star's boardroom and leadership turned hostile and threatened to sue over the results of the 2022 investigation.

In addition to designating a government monitor for the 2022 investigation, the NICC fined The Star AU$100 million (US$68 million). Thirty recommendations were given in the 2022 report to address the problems found during the investigation.

In the investigation that followed, Bell discovered that The Star had not undergone significant changes until lately, namely following the exits of Chair David Foster and CEO Robbie Cookie. 

Enhancements to Governance, Stock Halted 

Following the appointments of Janelle Campbell as CEO of The Star Sydney in January, Steve McCann as group CEO in late June, and Jeannie Mok as group CFO in late May, Crawford observed improvements in regulatory compliance.

"The level of transparency and cooperation has certainly improved since their appointments,” Crawford said.

Following the Bell findings, The Star successfully petitioned the Australian Securities Exchange to stop trading its shares. The Star had asked for further time to prepare its annual financial statements, which were scheduled to be released on Friday. Next week, shares will be traded again.