The Star Sydney must still prove that its remediation efforts have been properly embedded in the business
Star Entertainment Group shares lost more than 10 per cent on Friday after the New South Wales gambling regulator extended its oversight of The Star Sydney.
The action by the New South Wales Independent Casino Commission (NICC) comes one day after authorities in Queensland extended the appointment of Nicholas Weeks as special manager of The Star Gold Coast.
The NICC said in a statement Friday that Weeks will also continue his assignment as special manager and licence holder of The Star Sydney, allowing the casino to continue operating gaming facilities while its licence remains suspended.
The licence suspension at The Star Sydney, and Weeks’ assignment, have been extended until the end of June 2027.
NICC chief commissioner Philip Crawford said that progress had been made by The Star but questions remained regarding the casino’s progress against its governance, leadership and culture remediation which are crucial to ensuring it can operate under its own casino licence.
“There is no doubt that The Star has come a long way in addressing the matters which led to the suspension of its casino licence in 2022,” said Crawford. “However, recent allegations regarding governance, leadership, and culture at the casino are serious and are being treated as such by both the manager and the NICC.
“It is disappointing that despite the progress made by the Sydney casino, the Group company continues to experience problems that affect each of its properties.”
In June, The Star Sydney was fined A$10 million for financial crime risk management and responsible gambling failings.
Crawford added: “The NICC will be watching carefully to see how The Star and The Star Entertainment Group resolve these issues. Both companies need to demonstrate to the NICC that they have learned from past mistakes and can resolve these cultural issues without the need for the NICC’s intervention.
“Ultimately it is The Star’s responsibility to demonstrate that it believes in its remediation efforts and that they can do the work to ensure its remediation sticks long-term.”
The NICC statement also noted that The Star is still awaiting the outcome of the civil proceedings brought against it by AUSTRAC in the Federal Court and said that there remains uncertainty about The Star Entertainment Group’s capacity to support The Star’s remediation while it fills critical leadership and governance roles.
“These are all issues which need to be resolved before the NICC can lift The Star’s licence suspension, which can occur at any time if the casino can demonstrate that its remediation efforts have been properly embedded in the business,” Crawford concluded.
Shares in Star Entertainment Group (ASX:SGR) closed 10.34 per cent lower at A$0.13 per share in Sydney Friday.