Sydney casino The Star has been fined $15 million by New South Wales’ Independent Casino Commission (NICC), and its casino licence will remain suspended.
The NICC’s inquiries uncovered “continuing compliance failures and operations at The Star that fell far short of suitability”, according to Chief Commissioner Philip Crawford.
While The Star’s licence is suspended, its doors will remain open. However, the NICC’s appointed manager will oversee its operations. Its licence status will be reassessed next March.
Crawford stressed that the NICC’s inquiries did not reveal criminality at The Star. “There’s no suggestion that organised crime infiltrated again, but there’s huge question marks over the last couple of years of their confidence and their capability.”
The NICC also ordered additional financial and operational reports from the casino between now and March.
“The Star CEO, Steve McCann, has established open lines of communication and cooperation with the NICC which has resulted in a much healthier relationship between the company and the regulator,” Crawford said.
“However, more work needs to be done before The Star can be regarded as a compliant and responsible operator, deserving of a licence.”
The Star’s licence was previously suspended in 2022, after NICC found it had failed to prevent money laundering activities. Star Entertainment was fined $100 million that year.
Star Entertainment, The Star’s parent company, requested that its securities be placed in a trading halt after the announcement. Its share price has fallen 58% over the past year.
This halt will continue until Friday trading begins, unless ASX intervenes.
As of 3:09 pm AEDT today, the Star Entertainment Group (ASX: SGR) stock price was $0.28. Its market cap was $794.62 million.