Star slammed in state probe
Star Entertainment has been found unfit to hold a casino licence in NSW.
Regulators have handed the casino group a show cause notice to explain why it should not take disciplinary action, after releasing the 946-page final report of the Bell inquiry into the company this week.
The review found widespread misconduct had occurred at the casino in the decade leading up to this year. The hearings uncovered allegations the Star hid criminal gang-linked junket operator Suncity’s illegal cash cage from the regulator and allowed it to operate a secret gambling room at its Pyrmont casino.
Inquiry head Adam Bell, SC, said the terms of reference of the probe prevented him from recommending changes to make Star once again suitable for its licence.
NSW Independent Casino Commission chief commissioner Philip Crawford says the watchdog is considering what action to take against Star, which could include tearing up its licence.
He has also hit out at the group for “institutional arrogance”, saying the board of directors generally “had no clue” what was occurring inside the casino operator and, as such, “weren’t really doing their job”.
Star’s executives were slammed for ignoring “the risks inherent in a lot of the conduct,” Mr Crawford added.
“There’s been people removed from the company”, he said, but warned “it’s not a matter of sacking a number of chief executives and saying everything is right again”.
Mr Crawford said another inquiry may have to be held into the suitability of Star’s remaining executives.
A confidential portion of the report covers ongoing criminal investigations.
“The police are investigating a range of issues to do with individuals, in terms of breaches of the Casino Control Act,” he said.
Star is required to respond to the regulator’s show cause notice within the next 14 days.
Reports say it is unlikely Star will be forced to close completely, and Mr Crawford said the regulator would consider the impact of any action on Star’s 8,000 employees and the wider community before making a decision.