Star Entertainment has been declared unsuitable to regain control of its Sydney casino license after a second damning inquiry exposed significant compliance failures and governance issues.
The New South Wales (NSW) Independent Casino Commission is now considering the future of Star’s casino license, which remains suspended. A regulator-appointed manager continues to oversee operations at the Sydney casino, following earlier findings of anti-money laundering and counter-terrorism failings.
The latest inquiry, led by Adam Bell, uncovered four major compliance breaches since the previous investigation in 2022. These included a $3.2 million fraud linked to a software glitch in “ticket in, cash out” machines that went undetected for six weeks, as well as violations of rules requiring patrons to take breaks during extended gambling sessions.
The inquiry also pointed to “systemic and extremely serious issues,” with Star staff falsifying records to suggest interventions had taken place to protect vulnerable patrons when they had not.
An external review commissioned by Star in mid-2023 revealed troubling cultural issues within the company, with “shadow values” such as “profit matters most” and “just get it done” influencing decision-making.
The release of the inquiry report on Friday prompted Star Entertainment to halt trading of its shares and delay the announcement of its 2024 financial year results. The company cited the need to finalize details following receipt of the report.
Philip Crawford, chief commissioner of the NSW casino regulator, criticized Star for not moving quickly enough to address governance and cultural problems identified in the initial inquiry. “It has only very recently turned its attention to dealing with challenges that should have been prioritized earlier,” Crawford said.
Star Entertainment’s chair, Anne Ward, conceded earlier this year that the company was not fit to hold its casino license but expressed optimism that the management team could be transformed within months. The company has since appointed former Crown Resorts CEO Steve McCann to lead the turnaround.
In addition to its Sydney operations, Star Entertainment runs casinos in Brisbane and the Gold Coast, with the future of its broader operations now under increased scrutiny.
Original article: https://www.yogonet.com/international/noticias/2024/09/02/77392-star-entertainment-declared-unsuitable-to-regain-sydney-casino-license-after-damning-inquiry
