Star, a prominent casino operator, is currently undergoing a licence suitability review by the NSW Independent Liquor and Gaming Authority. The review was initiated in September of the previous year, focusing on Star Sydney’s interactions with junkets and its money laundering prevention measures. As the review nears its conclusion, reports have surfaced suggesting that Star may risk losing its licence unless it implements board overhauls and compliance reforms. The review’s findings were recently presented to state officials and may be publicly released in the coming days. In response, Star has requested a trading halt on its shares until the report’s release. Additionally, a separate independent review is underway in Queensland, examining Star’s suitability to hold a casino licence in the state.
The Licence Review in NSW:
The ongoing licence suitability review in NSW, led by Adam Bell SC, has raised concerns about Star’s compliance practices and board structure. The review’s findings, reported by The Australian newspaper, suggest that Star may face the loss of its licence unless significant reforms are implemented. The report, yet to be received by Star, is expected to be publicly released in the coming days. In anticipation of the report’s publication, Star has requested a trading halt on its ordinary shares to prevent trading in an uninformed market.
Response from Star and Trading Halt:
Star stated that it has not yet received a copy of the report and is unaware of its contents. However, the company acknowledged that the report’s release is imminent. In response, Star submitted a request to the Australian Securities Exchange for an immediate trading halt on its shares until the public release of the report and the commencement of trading on September 14, 2022. This precautionary measure aims to ensure that trading takes place in an informed market and to avoid any potential market volatility.
Licence Review in Queensland:
In addition to the review in NSW, Star is also undergoing a separate independent review in Queensland. The Queensland review was announced in June and focuses on assessing Star’s suitability to hold a casino licence in the state. Concerns over money laundering and integrity prompted the review, which will take place alongside ongoing investigations by the state’s police and casino regulator. Star currently operates The Star Gold Coast land-based casino in Queensland.
Star’s licence suitability review in NSW, with its potential impact on the company’s operations, underscores the significance of compliance and board structure in the casino industry. While the report’s contents remain unknown to Star, the request for a trading halt demonstrates the operator’s commitment to transparency and fair trading practices. The ongoing review in Queensland further highlights the importance of regulatory compliance and integrity in maintaining a casino licence. As the reports are publicly released and investigations progress, Star will need to address the concerns raised, implement necessary reforms, and work closely with regulatory authorities to ensure its ongoing suitability to operate in both NSW and Queensland.