WEEKLY FEATURE: Star Entertainment Makes Final Appeal for Suitability as Bell Two Draws to Close

Star Entertainment will now await a final ruling from Commissioner Adam Bell SC as the Bell Two inquiry has ended. The last month has seen several disastrous developments for the company, and the fate of Star Sydney now potentially hangs in the balance.

WEEKLY FEATURE: Star Entertainment Makes Final Appeal for Suitability as Bell Two Draws to Close

In closing remarks for the Bell Two inquiry last week, attorneys for Australian operator Star Entertainment acknowledged the litany of shortcomings the company has committed, but maintained it should be found suitable to operate Star Sydney under supervision, including the extension of state-appointed manager Nicholas Weeks.

The prosecution has argued for Star to again be found unsuitable, two years after the first Bell inquiry reached the same conclusion. Commissioner Adam Bell SC is now set to hand down his final report to state regulators by the end of July.

There are multiple ways the matter could play out, up to and including permanent closure for the casino.

Prosecuting attorney Caspar Conde said in his final statements that it is clear Star is still unsuitable for full licensure but did not argue for Star Sydney to be shut down.

“In the suitability review, we submit that actual conduct and factual developments will tend to be more important than opportunities and words. The inquiry is entitled to look at the history of not taking opportunities … That does raise the 14 lost months as relevant,” Conde told the inquiry, per the Sydney Morning Herald.

According to Inside Asian Gaming, Star’s attorney Bret Walker SC called the company’s conduct “deplorable” but not endemic.

“They are so striking in their particular facts that they present no inherent likelihood at all of repetition, nor do they show any pattern of conduct,” he argued, per IAG.

Walker also went on to argue that the casino business is inherently risky, and subject to its ups and downs.

“There is nothing to suggest that the conduct of a business, which requires attracting people to put their money on the table, literally and figuratively, was intended to be risk-free,” he contended, per Yahoo! News Australia.

Over the last month, multiple revelations have been unearthed by the public inquiry. Perhaps most notable were text messages from former Chairman David Foster to former CEO Robbie Cooke about Star having to “go to war” with the NSW Independent Casino Commission (NICC).

Foster also expressed interest in potentially pursuing legal action against the NICC and Weeks, and called for the regulator to be abolished and replaced by a body that would oversee the state’s bar and club industry in addition to casinos.

Cooke told the inquiry that he felt the relationship between Star and the NICC was a “one-way street” and not collaborative. Other testimonies indicated that he fostered an “us-versus-them” mentality within the company.

Star was also found to have falsified documents related to player wellness checks, and reportedly lost AU$3.2 million due to a faulty cashout machine that was allowing players to reuse tickets.

Cooke resigned in March, before the inquiry began, and Foster was replaced by Anne Ward in late April in response to the proceedings. He remains on the board in a non-executive role until a new permanent CEO is named.

In addition to a new CEO, the company is also currently without a chief legal officer, chief financial officer and several other executive roles. It is also looking for a new CEO for its Gold Coast casino after Jessica Mellor stepped down from the role in late April.

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