For now, however, the licence will remain suspended pending the completion of transformation actions, with the NICC set to reassess Star’s suitability by 31 March 2025.
The company said in an ASX release: “The Group will continue to engage constructively with the NICC in respect of The Star Sydney and its operations while its licence remains suspended including regarding the directions above and the proposed amendments to The Star’s Sydney’s licence conditions.”
Ahead of the Star’s announcement to the market it implemented a trading halt, which has now ended, with the group subsequently seeing a modest improvement in its share price to A$0.28.
The regulator additionally issued new governance and operational directions to its The Star Sydney under the Casino Control Act 1992.
The NICC also proposed new licence instructions to the casino regarding key management personnel and the composition of its board.
Queensland approves Star remediation plan
Meanwhile in Queensland, the operator’s Revised Remediation Plan has been approved by the Office of Liquor and Gaming Regulation Queensland (OLGR).The regulator cleared the plan with several requirements, including rules around budgets, funding, monitoring and oversight.
Star will also need to consult with the OLGR, its special manager and external advisor, as well as release an overview of the plan.
The company said it plans to do so “in due course” following completion of the consultation.
Star added: “The Star looks forward to continuing its constructive engagement with both the NICC and OLGR, and its other stakeholders, as it embeds a sustainable remediation of the Group and progresses a viable pathway toward suitability.”
Alongside the NICC fine, analysts have said the group will also likely face enforcement action from the country’s AML body, AUSTRAC.
The regulatory issues come as the company assesses its shaky financial position, after announcing last month it had agreed with lenders for A$200m in new debt to be accessed in two tranches.
This follows Star reporting a A$1.69bn net loss for the financial year ending 30 June 2024, driven by a A$1.44bn write-off due to challenging trading conditions and regulatory issues.
