Star Entertainment in trading halt as new casino inquiry looms
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The news: Star Entertainment shares are in a trading halt after the NSW Independent Casino Commission (NICC) announced a second inquiry into the casino operator.
The numbers: NICC's second inquiry into the Star, which will be conducted by senior counsel Adam Bell, will run for approximately 15 weeks, with the final report due on 31 May.
The announcement follows an agreement made in August between the Star, the NSW government and the United Workers Union to protect 3,000 jobs until 2030 at its Sydney casino.
The Star requested a trading halt at 10:51am AEDT ahead of an announcement to the ASX regarding the new inquiry, with shares last trading at 56 cents.
The context: The inquiry follows a previous review by the NICC, which began in September 2021 and completed in August 2022. The original inquiry, which led to the resignation of the Star's board and CEO Matt Bekier, found the Star was unsuitable to hold its casino licence, following evidence of money laundering, criminal infiltration and large-scale fraud.
NICC's chief commissioner Philip Crawford said the previous inquiry necessitated deep structural change that would address the casino’s failings and prevent further misconduct.
In November, Star shares rose after the group signed a tax agreement with the NSW government after money laundering breaches were revealed.
What they said: Crawford said: “There was a substantial shift required and the Star has had 18 months to demonstrate that it has the capability and resources to regain its casino licence".
“The NICC has had concerns about the extent that remediation is attributable to the manager’s oversight and direction versus what is being driven by the Star’s reform agenda.”
“There is much at stake for the Star, so the NICC is giving the casino every chance it can to demonstrate whether it has the capacity and competence to achieve suitability.”
“This includes meeting its financial obligations under the casino licence and funding its remediation program sufficiently."
The sources: ASX announcement , NICC media release
