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The NICC has issued a show cause notice, requesting an explanation as to why it should not enforce disciplinary measures. We are expecting an answer from Star no later than 27 September, which is 14 days from today (13 September).
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 reveal the terrible working conditions at Star Sydney in New South Wales.
The findings that Star does not qualify for a licence are repeated in both volumes, which were handed down in 2022. In addition, Star acknowledged during the inquiry's public hearings that it was not yet ready to operate independently. Conditional appropriateness has been advocated for, however Bell has dismissed it as an unfounded assumption.
The NICC cites four significant violations highlighted in the Bell Report in its show cause notice. There was a fraud scheme involving a malfunctioning cash-out machine, many high-risk customers were not adequately vetted, and customers who had played nonstop for more than three hours were given fabricated harm-minimization checks.
Correspondence pertaining to Star's dysfunctional and antagonistic management style, operations, and culture has also been issued by the NICC. There were also pointed out 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.
In what ways might Star be penalised?
The NICC has stated that 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. In addition to sending a letter of censure to Star, the NICC mentioned that it could modify the license's terms and conditions, prohibit specific operations, or both.
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.
Star continues to seek guidance regarding their financial situation
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.
The NICC also requested Star's input regarding the steps being taken in response to the findings in Bell Two, in addition to the notice. Among these are the repair plan and the entity's eligibility to have a licence in New South Wales.
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.
"State governments, regulators and the company's lenders are among those involved in these ongoing discussions," Star said.