The second Bell Report could result in a AU$100 million penalty or the cancellation of Star's licence.

The second Bell Report could result in a AU$100 million penalty or the cancellation of Star's licence.

 Star Entertainment Group has been threatened by the New South Wales Independent Casino Commission (NICC) with the revocation of its Australian state licence or the imposition of a financial penalty due to regulatory violations that were identified in the second Bell Report.
 Ladbrokes Northern Territory wagering
 The NICC is requesting a response as to why it should not take disciplinary action by issuing a show cause notice.  Star is required to respond within 14 days of today (September 13), with a response anticipated no later than September 27. 

 The second Bell Report, the contents of which were disclosed by the NICC late last month, is referenced in the notice.  The two volumes provide a comprehensive account of the catastrophic operating environment at Star Sydney in New South Wales.

 In that Star is unsuited for a licence, both volumes reaffirm the findings of the initial inquiry, which was completed in 2022.  During public hearings for the inquiry, Star itself acknowledged that it was still not presently capable of operating independently.  It has advocated for conditional suitability, which Bell rejected as an invalid premise.

 Four main breaches identified in the Bell Report are referenced by the NICC in its show cause notice.  These consist of a fraud scheme that included a defective cash-out machine, the failure to properly vet a significant number of patrons who were identified as high-risk, and the falsification of harm minimisation checks for patrons who had exceeded three hours of continuous play.

 The NICC has also issued correspondence regarding Star's management structure, operation, and culture, which were demonstrated to be isolated and combative.  Also, the remediation plan and its implementation were criticised for their deficiencies.  Furthermore, as is the case in the report, it raises concerns regarding Star's overall eligibility to maintain a casino licence.

 Star may incur what penalty?
 Star's sanctions will be contingent upon its response to the show cause notice, according to the NICC.  Nevertheless, it did specify a few of the disciplinary measures that it could implement, if necessary, in accordance with the responses.

 These include the revocation of Star's casino licence in New South Wales or the imposition of a pecuniary penalty of up to AU$100 million (£51.1m/€60.6m/US$67.2m).  The NICC also stated that it has the option to modify the terms and conditions of its licence, prohibit specific activities and operations, or send a letter of censure to Star.

 The NICC stated that it is still in the process of evaluating its response to the Bell Report, which includes Star's capacity to secure financial resources to guarantee the casino's financial stability.

 Star continues to seek guidance regarding her financial situation.
 Star responded by stating that it is currently reviewing the issues raised in the notice and Bell Two.  Star also indicated that it anticipates furnishing a comprehensive response by the deadline of September 27.

 The NICC requested that Star submit submissions regarding the actions being taken in response to the findings in Bell Two, in addition to the notice.  These encompass its remediation plan and its eligibility to maintain a licence in New South Wales.

 The NICC has also requested information regarding Star's financial position and proposed strategies for addressing these issues on an ongoing basis.  According to the NICC, this would enable it to make well-informed decisions regarding Star's financial viability.

 Star reiterated that it is continuing to collaborate with a variety of stakeholders and advisors regarding its financial status.  Following a delay in the publication of its full-year results, Star disclosed such discussions last week, which resulted in its suspension from trading by the Australian Securities Exchange (ASX). 

 "These discussions are ongoing and involve, among others, state governments, regulators, and the company's lenders," Star stated.