In a surprising turn of events, Star Entertainment Group still holds the right to operate its Sydney-based casino despite facing potential license revocation. However, this privilege comes with stringent conditions imposed by the New South Wales Independent Casino Commission (NICC). Instead of revoking the license, the regulatory body has opted to issue a hefty penalty of AU$15 million, maintaining the suspension of The Star’s license while enforcing multiple operational conditions.
According to Steve McCann, there have been numerous regulatory challenges and oversight extensions for Star. The Sydney casino, in particular, has been plagued with compliance failures such as inadequate anti-money laundering controls, breaches of China’s capital regulations, and enabling problem gambling. As a result, a government-appointed manager, Nicholas Weeks, has been overseeing operations with his mandate recently extended until March 2025.
The Bell Report highlighted the continued failure of The Star to address previously identified compliance issues, which strained the relationship between the casino operator and the NICC. Thankfully, the appointment of Steve McCann as CEO has led to improved communication and cooperation between the two parties. This enhanced relationship has paved the way for a more constructive dialogue regarding operational improvements.
NICC Chief Commissioner Philip Crawford expressed cautious optimism in McCann’s ability to lead The Star out of its troubles. “I have a lot of confidence that this guy can do it,” Crawford stated, recognizing the challenging path ahead for the casino. “Their biggest risk as we stand here today is their financial stability,” he added, underscoring the importance of implementing operational improvements.
Despite the gravity of the findings and the substantial AU$15 million fine, the commission refrained from revoking Star’s license due to the potential economic ramifications. Such a decision could impact over 9,000 employees and potentially lead to the collapse of not only the Sydney casino but also the new Brisbane gaming resort. “It would be a very, very final act to take the license away, particularly given the current economic times,” explained Crawford, emphasizing the delicate balance between regulatory enforcement and economic stability.
Star’s response to the NICC’s decision was cautiously optimistic, resulting in a notable 18% increase in shares. However, the company’s market value remains significantly depressed, reflecting ongoing investor concerns about its sustainability.
