The Star soars as its seeks 'constructive engagement' with regulators
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More news: Shares in Star Entertainment rocketed after emerging from a trading halt on the ASX.
Star shares were up 11.8% to 28.5 cents by 3pm AEDT, after the casino operator said it will "continue to engage constructively" with the NSW Independent Casino Commission (NICC) over the operations of its Sydney casino.
The announcement came after the casino regulator handed the gambling group a $15 million fine and proposed a suite of amendments to The Star Sydney's licence conditions this morning.
Meanwhile, The Star confirmed that its revised remediation plan for its Gold Coast and Brisbane casinos has been approved.
As part of the approval, the Office of Liquor and Gaming Regulation Queensland (OLGR) has issued requirements relating to budgets and funding to support the plan, and ongoing monitoring and oversight of the plan.
The Star said an overview of the remediation plan will be published in "due course" following consultation with the OLGR and the special manager and external advisor.
What they said: "The Star looks forward to continuing its constructive engagement with both the NICC and OLGR, and its other stakeholders, as it embeds a sustainable remediation of the group and progresses a viable pathway toward suitability," the company said.
The Star fined $15m, licence suspension for review in March
More news: The NSW Independent Casino Commission (NICC) has handed Star Entertainment a $15 million fine and imposed a suite of directions and licence conditions on the Sydney casino operator in response to the Bell Two Inquiry.
The Star’s licence will remain suspended and the NICC-appointed manager, Nick Weeks, will continue to have oversight of casino operations until at least 31 March 2025, at which time the NICC will reassess The Star’s suitability to regain its casino licence.
The NICC noted that in response to the Bell Two Report it has:
- Imposed a $15 million fine for serious breaches of four internal control manuals;
- Made directions that reflect Adam Bell's report recommendations;
- Stipulated additional financial and operational reporting required between now and March 2025;
- Proposed to amend The Star’s suspended casino licence to include more prescriptive requirements around board constitution and key management personnel; and
- Requested amendments to the Casino Control Act as recommended by Bell.
Weeks will continue to hold the licence until at least the end of March, allowing The Star to operating gaming facilities while its licence is suspended.
The Star entered a trading halt on the ASX this morning as it considers its response to the NICC.
What they said: NICC chief commissioner Philip Crawford said: "Despite more prescriptive supervision that prevented the type of misconduct seen in the first inquiry, numerous shortcomings in governance, regulatory compliance, technology and risk management remain, including in areas that The Star claimed it had remediated.
"Reform in the systems, policies, processes and culture that support these areas cannot be understated in a business as complex as The Star’s.
"In a casino setting, compliance breaches can have serious consequences for the community, and the Bell Report illustrated how quickly weak controls can lead to criminal infiltration and gambling harm.
"The NICC understands the many challenges The Star is facing and will continue to closely monitor The Star’s progress in proving it is capable of regaining its casino licence."
The Star in trading halt as it considers regulator response
The news: Star Entertainment has entered a trading halt on the ASX after being contacted by the NSW casino regulator regarding the gambling and entertainment company’s response to the Bell Two Report.
The numbers: Star shares last closed at 25.5 cents, having plunged more than 40% in one day last month, after emerging from a trading suspension imposed following the company's failure to lodge its full-year results.
The context: Star said it will make an announcement after it has considered the correspondence from the NSW Independent Casino Commission.
Last month, Star confirmed that it had responded casino regulator's 'show cause' notice, relating to matters arising from Adam Bell's second report, published in August, which followed a months-long inquiry into Star's suitability to hold a NSW casino licence.
The casino operator said it also made further submissions to the regulator in relation to The Star Sydney's suitability to hold the Sydney casino license, progress on its remediation plan, the company's current financial position, and its proposed plans to address financial issues on an ongoing basis.
The sources: ASX announcement, NICC media release, ASX announcement
