The Star Entertainment Group has requested a trading halt on the Australian Stock Exchange as a second investigation into the operator highlighted continuing regulatory shortcomings.
Adam Bell, a lawyer appointed by the NSW Independent Casino Commission, conducted an initial investigation into the Australian casino operator in 2022 which cited “serious regulatory failures” and deemed the company to be “unsuitable to hold a casino licence”.
As a result of those findings, Bell was tasked with conducting a second investigation into The Star which was finalised on 31 July 2024. Almost a full month later, the findings have been issued to The Star ahead of being made available to the public.
According to a statement issued by the NICC, the second Bell Report has “validated the concerns that prompted the second inquiry”, causing The Star to postpone the release of its fiscal year 2024 financial results and request the trading halt from the ASX.
The statement referred to “four compliance breaches”, explaining that the regulator will “respond in due course”.
NICC Chief Commissioner, Philip Crawford, stated: “The Bell Report reveals a company that had not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report.
“It has only very recently turned its attention to dealing with challenges that should have been prioritised earlier.”
Upon The Star receiving the report, the ASX issued a market announcement for the group stating that its securities will be placed in a trading halt at the company’s request.
Although the group has failed to repair problems within the company’s compliance to certain regulations, the latest Bell Report did suggest that recent company changes have resulted in improvements.
Crawford continued: “The Bell Report notes that Steve McCann Group CEO, Janelle Campbell Sydney CEO and Jeannie Mok Group COO, bring important experience and expertise to the process of engagement with regulators, remediation and cultural transformation which will be vital if the NICC decides that The Star should remain as the operator of The Star Casino.
“The level of transparency and cooperation has certainly improved since their appointments. However, the Bell Report underscores the NICC’s concerns that it was not receiving all of the facts from The Star at a time when we needed certainty the company could fund and prioritise an urgent business turnaround.”
Unless the stock exchange decides otherwise, The Star’s securities will remain in the trading halt until the commencement of normal trading on Monday, 2 September or “when the announcement is released to the market”.
This announcement refers to The Star addressing the report, as well as its FY2024 financial results and “other matters raised in media articles referring to The Star’s results”.
Crawford concluded: “The NICC is responsible for regulating an industry that is highly vulnerable to criminal infiltration and we are tasked with setting regulatory standards that meet the community’s expectations.”
