Star might lose their licence or pay a fine of up to AU$100 million due to the second Bell Report.
With the show cause notice it has issued, the NICC is trying to get an explanation for why it shouldn't punish the offender. We expect Star to respond no later than September 27th, which is 14 days from today, September 13th.
The second Bell Report, whose findings were disclosed by the NICC towards the end of last month, is mentioned in the notice. The two books describe in detail the terrible working conditions at Star Sydney in New South Wales.
The two volumes restate the original findings from the 2022 probe, which found that Star did not meet the licensing requirements. During the inquiry's public hearings, Star itself acknowledged that it was still unfit to operate independently at this time. It has pushed for conditional suitability, an assumption that Bell deemed unfounded.
Four significant violations highlighted in the Bell Report are cited by the NICC in its show cause notice. Some examples of these wrongdoings include a fraudulent plan involving a malfunctioning cash-out machine, an inadequate screening of several high-risk customers, and the fabrication of harm-minimization checks for customers who had played nonstop for more than three hours.
Correspondence pertaining to Star's dysfunctional and antagonistic management style, operations, and culture has also been issued by the NICC. Also brought to light were problems with the company's strategy for fixing the problem and putting it into action. Along with the report's claims, it casts doubt on Star's ability to lawfully operate a casino.
How severe a penalty could Star incur?
According to the NICC, Star's punishment will be contingent upon the company's reply to the show cause notice. Nevertheless, it did outline a few disciplinary measures it could take in response to the comments, should the need arise.
Some of these measures include fining Star up to AU$100 million (£51.1 million, €60.6 million, or US$67.2 million) or revoking Star's casino licence in New South Wales. The NICC has stated that it has the option to send a letter of censure to Star, modify the terms and conditions of its licence, or prohibit specific activities and operations.
As part of its ongoing review of the Bell Report, the NICC is taking Star's capacity to secure funding into account in order to guarantee the casino's financial sustainability, according to the organisation.
The star is still in the process of getting financial assistance.
Star responded by saying it is thinking about the issues brought up in the notice and Bell Two. According to Star, a comprehensive response is expected to be provided by the deadline of 27 September.
Along with the notification, the NICC also requested that Star provide comments regarding the measures being taken in response to the findings in Bell Two. Its repair plan and eligibility to hold a licence in NSW are two of them.
As for Star's financial situation and ongoing intentions to remedy these difficulties, the NICC has also asked for this information. The NICC claimed that this would help it determine if Star was financially suitable.
Regarding its financial situation, Star has stated that it is still in communication with a number of stakeholders and advisors. Last week, Star announced the discussions following the Australian Securities Exchange (ASX) suspension of the company from trading due to a postponement in the publication of its full-year results.
The state governments, regulators, and lenders of the corporation are all involved in the ongoing conversations, according to Star.
