In response to the recent Bell Report, which recommended Australia’s Star Entertainment be deemed unfit to hold a license for its Star Sydney casino in New South Wales (NSW), regulators have suspended the license, appointed a third-party manager to oversee operations and imposed a record $62.7 million fine for failures related to money laundering and junket operations.
The punishments were handed down from the NSW Independent Casino Commission (NICC), which was just formed in recent months, largely to rule on matters such as this. The NICC announced on October 17 that Nicholas Weeks, director of Wexted Advisors, has been appointed to oversee Star Sydney’s remediation efforts for at least 90 days.
With Weeks in charge, the NICC opted to let Star Sydney remain operational during the course of the license suspension, which is set to take effect October 21.
Philip Crawford, chief commissioner of the NICC, told ABC Australia that the agency “has resolved that it is no longer in the public interest that The Star should remain in control of that license, and that The Star is not currently suitable to be the holder of the license.”
Star has pledged to cooperate with proceedings in full, and Crawford acknowledged that, saying that the company’s “current board and executive understand the gravity of Bell’s findings. They have publicly apologized and acknowledged the serious wrongdoing that occurred, and they are willing to cooperate with the regulator.”
The $62.7 million fine is now the largest to ever be administered to an Australian casino, trumping the $57 million fine given to fellow operator Crown Resorts in May. While fines such as these may jump off the page, critics are skeptical of their effectiveness in thwarting problem behavior, given that Crown had no problem merging with U.S.-based Blackstone Group, which ultimately allowed the operator to retrieve its licenses in multiple states.
That said, help is now on the horizon for Star, as incoming CEO Robert Cooke received regulatory approval in Queensland on October 17, the same day in which the NICC announced Star Sydney’s punishments.
Even though Cooke is still awaiting approval in NSW, he can at least begin to alleviate some of the pressure off of Executive Director Ben Heap, who was filling in as CEO following the departure of Geoff Hogg last month.
Cooke has already made a favorable impression on Crawford, who expressed confidence in his ability to help lead Star back to suitability, telling ABC Australia that the duo of Heap and Cooke are “leading the board in a way that shows contrition.”
