The New South Wales Independent Casino Commission (The NICC) has issued a show cause notice to The Star, seeking its response as to why it should not take disciplinary action in respect of breaches substantiated in the second Bell Report.
The notice relates to four significant breaches detailed in the second Bell Report, including one that resulted in a cash fraud against The Star, a failure to run source of wealth checks on hundreds of members flagged as high risk, and fraudulent guest welfare entries that put already vulnerable customers at higher risk of harm.
The NICC has also issued correspondence to The Star in relation to its management, operation and culture, the adequacy and implementation of its remediation plan, and The Star’s overall suitability to hold a casino licence.
The Star has 14 days to respond to the show cause notice and related correspondence. The NICC will then consider what course of action it will take, including whether disciplinary action is appropriate.
Disciplinary options available to the NICC include cancellation of the licence, a pecuniary penalty of up to $100m, an amendment of the terms or conditions of the licence, a requirement that a casino operator, or a close associate of a casino operator, give an undertaking (an enforceable undertaking) to do or refrain from doing something, a letter of censure to the casino operator.
The NICC continues to consider its response to the Bell Report including The Star’s ability to obtain financial resources to ensure the financial viability of the casino.
A spokesperson for Star Entertainment said: ” The Star Entertainment Group notes that following the
release of the final report in connection with the 2024 Independent Inquiry into The Star, undertaken by Adam Bell SC in accordance with the Casino Control Act 1992 (NSW) on Friday 30 August 2024 (Bell Two Report), the New South Wales Independent Casino Commission (NICC) has today served on The Star a ‘show cause’ notice in respect of matters arising from the Bell Two Report (Notice).”
“In addition to the Notice, the NICC has also asked the Company to make submissions as to the actions being taken by the Company in respect of a number of findings in the Bell Two Report relating to, among other things, the Company’s suitability to hold the casino licence for The Star Sydney and progress in respect of its remediation plan. The NICC has also requested information about the Company’s current financial position and its proposed plans to address these issues on an ongoing basis so that it can make informed decisions about the Company’s (and The Star Sydney’s) financial suitability.”
“The Star expects to respond to the Notice by Friday 27 September 2024. The Star is currently considering the matters raised in the Notice, the additional requests by the NICC as well as the Bell Two Report. The Star is continuing to work with various stakeholders and advisers in respect of its financial position. These discussions are ongoing and involve, among others, State governments, regulators and the
company’s lenders.”