“We do not take this decision lightly,but I’m not yet sure they have addressed the cultural reform Bell identified in his first report,” Crawford said. “Cultural change does take time but you’ve got to be on the right track to start with,otherwise you’re just embedding the bad culture.”
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The Star has replaced all of its board and the bulk of its leadership since damning inquiries into its operations in NSW and Queensland. Last month,the group appointed new chief executives Daniel Finch and Janelle Campbell to helm its respective Brisbane and Sydney premises.
Bell’s first inquiry said it was not in a position to determine the suitability of The Star’s chief financial officer Christina Katisbouba,company secretary Jennie Yuen and head of customer George Hughes,who all remain on the company’s leadership team. The business has also promoted Jessica Mellor to head the Gold Coast casino. Mellor was formerly the chief operating officer of the broader business.
Bell will now be tasked with looking into issues of culture and risk management;financial resources;management and reporting structures;and compliance with internal control measures relating to customer risk,financial transactions and due diligence.
His first report found The Star was not suitable to hold its casino licence. It found its business was a “case study of unethical conduct and cultural failure.
“The cultural dysfunction had significant adverse consequences for Star Entertainment’s capacity to withstand the risks of criminal infiltration and money laundering,” Bell’s original report found.
The NSW regulator imposed a record $100 million penalty on The Star in 2022 following changes to the NSW casino legislation introduced by the former Coalition state government.
“The rules have changed since before Bell. Some of the behaviours he was investigating continued during the hearing and right up until the end of the hearing. It’s a tougher regime we’re imposing because it has to be,” Crawford said.
The inquiry will run for 15 weeks from Monday. A final report is due on May 31.
The regulator will then assess whether Star Sydney has regained suitability to hold its suspended casino licence.
The other options available are as follows:that the inquiry provide conditional approval for The Star to operate under the eye of an independent monitor (as is the situation at rival Crown Sydney);or that it maintains its casino licence suspension and seeks cabinet approval to extend the tenure of the special manager for a fourth term.
It could also retire the manager who currently holds its casino licence,or cancel the licence entirely. Both these options would shut down the casino.
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The Star noted the inquiry in an announcement to investors late on Monday. .
Sources close to the business said the inquiry decision had blindsided its leadership,which had had mixed messages from the regulators in the two states in which it operates. Its 640-step remediation plan was recently endorsed by Queensland Attorney-General Yvette D’ath. That was taken as an encouraging step for its Brisbane and Gold Coast casinos,which are also operating under suspended casino licences.
This masthead revealed last December the regulator was not satisfied with the group’s remediation process and did not believe it was ready to operate without the supervision of an independent manager. A spokespersonsaid at the time it had six months to prove it was able to operate independently or risk its doors closing.
NSW Minister for Gaming David Harris said the decision to appoint Bell to conduct a second inquiry was a decision for the independent commission.
”The NSW government is committed to a casino industry that is safe,responsible and operating with the highest standards of integrity. The NSW government will await the outcome of the review. It would not be appropriate to comment further while this work is ongoing,” Harris said.