Star could be penalized or have its license revoked over Bell report

By issuing a formal notice, the NICC is seeking a response as to why it should not take disciplinary action. Star has 14 days from today (13 September) to respond, with a response expected no later than 27 September.

The notice refers to the second Bell report, the contents of which were revealed by the NICC late last month. The two volumes detail Star Sydney’s disastrous operating environment in New South Wales.

Both volumes echo the findings of the first inquiry, delivered in 2022, that Star is not fit to be licensed. Star itself also admitted at the inquiry’s public hearings that it was still not fit to operate independently. It lobbied for conditional fitness, which Bell dismissed as an invalid premise.

In its notice of enforcement, the NICC refers to four major breaches identified in the Bell report. These include fraud involving a faulty withdrawal machine, a failure to properly screen a large number of customers flagged as high risk, and falsifying risk minimisation controls for customers who had exceeded three hours of continuous play.

The NICC also published correspondence regarding Star’s management structure, operations and culture, which were found to be siloed and conflicted. Issues with the company’s remediation plan and its implementation were also highlighted. In addition, as is the case throughout the report, it questions Star’s overall suitability to hold a casino licence.

What punishment could Star face?

The NICC said Star’s sanctions would depend on its response to the formal notice. However, it outlined some of the disciplinary options it would have, if any, depending on the responses.

These measures include cancelling Star’s casino licence in New South Wales or imposing a financial penalty of up to A$100 million (£51.1 million/€60.6 million/US$67.2 million). The NICC said it could also change the terms of its licence, block certain activities and operations or send a letter of censure to Star.

“The NICC continues to review its response to the Bell Report, including Star’s ability to secure financial resources to ensure the financial viability of the casino,” the NICC said.

The star is still seeking advice on her financial situation

Star responded by saying it was reviewing the issues raised in the notice as well as in Bell Two. Star also said it expected to provide a full response by the September 27 deadline.

In addition to the notice, the NICC asked Star to provide submissions on the actions taken following the findings of the Bell Two investigation. These include its suitability to hold a licence in NSW and its remediation plan.

The NICC also requested information on Star’s financial situation and proposed plans to address these issues on an ongoing basis. According to the NICC, this would enable it to make informed decisions on Star’s financial standing.

On that note, Star confirmed it was continuing to work with various stakeholders and advisors regarding its financial position. Star revealed those discussions last week after a delay in the release of its annual results led to its suspension from listing by the Australian Securities Exchange (ASX).

“These discussions are ongoing and involve, among others, state governments, regulators and the company’s lenders,” Star said.