NICC Extends The Star Sydney's Casino License Suspension
The New South Wales Independent Casino Commission (NICC) has extended the suspension of The Star Sydney's casino license until at least March 31, 2026.
LISTEN TO THIS ARTICLE:This decision comes after the NICC reviewed submissions from The Star Entertainment Group and independent manager Nicholas Weeks, determining that the company still hasn't demonstrated sufficient progress to regain its casino license.
The move extends the oversight of Nicholas Weeks, who has been managing the casino’s daily operations since its license was suspended in October 2022.
The suspension stems from a ruling that found The Star Sydney guilty of facilitating money laundering and serious compliance breaches, and as such unsuitable to manage a casino license under the Casino Control Act 1992. Weeks was then appointed to oversee the casino, ensuring that it remains operational in compliance with regulatory requirements.
Despite the license suspension, patrons continue to visit the property, though the cloud of uncertainty over the property’s future has lingered for staff and the local community who rely on the venue's activity.
NICC Awaits Lasting Change
The NICC’s latest decision means that the casino will continue operating under the existing arrangement while tackling fixes already outlined in its remediation plan, covering everything from internal controls to staff training.
The commission has made it clear that it will keep a close eye on the casino’s progress, reserving the right to reassess the situation once the company demonstrates more robust compliance with regulatory standards.
We acknowledge that there is more work to do, but we remain committed to delivering on our Remediation Plan to support the safe and compliant operation of our business.
The reports submitted to the NICC outlined progress made by The Star Sydney, including the implementation of enhanced monitoring systems and strategic partnerships to strengthen security measures. The regulator noted that while progress had been made, there are still areas of concern, particularly in the need for more evidence of lasting cultural changes within The Star Sydney's organization.
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Financial Pressures Mount as Reforms Progress
The extension lands at a challenging time for The Star, which recently reported a 29.2% slide in annual revenue to AU$1.19 billion (US$787.9 million).
The company narrowed its losses through selling assets and securing a deal with Bally’s Corporation, but it now faces talks with lenders over loan terms. On top of that, JPMorgan Chase has recently reduced its stake in the group below key levels, indicating a shift in investor sentiment toward the company.
The company is navigating financial obstacles as it works to solidify its operations across various properties. Key efforts include gaining full control of its Gold Coast sites and withdrawing from a Brisbane joint venture.
With no set timeline for reinstatement, the NICC's ruling puts the responsibility squarely on The Star to demonstrate sufficient progress and compliance.
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