A damning second report from Adam Bell, a lawyer appointed by the NSW Independent Casino Commission, has left Star Entertainment in financial turmoil according to media reports in the region.
The report played a key role in “validating the concerns that prompted the second inquiry” as it cited a lack of urgency from Star Entertainment in dealing with highlighted regulatory issues.
It has been reported that Star is looking for extra funding as it looks to navigate a volatile period financially following validation of the report, which deemed it unsuitable to hold a casino licence.
It also caused Star to request a trading halt on the Australian Stock Exchange, as the firm looked to find stability amidst a tricky period of compliance challenges.
On Monday morning however, Star shares were suspended from trading after the company failed to publish its financial report on Friday’s deadline.
Although it came after a request from Star for the suspension of share trading, it compounded a period of turbulence for the group off the back of the second report.
NICC Chief Commissioner, Philip Crawford, said: “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.”
A statement from the NICC referred to “four compliance breaches” from the Star group.
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.”
