The NSW Independent Casino Commission (NICC) has given the Star Entertainment Group six months to prove its ability to operate independently from the state-appointed manager in order to regain its gambling license. The NICC will reportedly close the doors of the Star Sydney casino if the operator fails to demonstrate its capacity to run the casino without supervision.
The NICC suspended the Star Sydney’s license in October 2022 after allegations of anti-money laundering and counter-terrorism failures. The regulator has extended the state-appointed manager’s term to June 2024 and has warned that if the casino cannot operate independently within the six-month deadline, the manager will be retired and the casino will close.
The Star Entertainment Group has been facing fines, class actions, and license revocations from various regulatory bodies, including AUSTRAC. As a result, the properties of The Star Sydney, The Star Gold Coast, and Treasury Brisbane have incurred a $2.2 billion non-cash impairment. However, the company has secured a new $450 million debt facility to continue its refinancing process.
A spokesperson for the company stated that they have a focus on transformation and are committed to implementing the remediation plan in New South Wales and Queensland with rigor and discipline. The company generated $1.9 billion in gaming revenues in the last financial year, representing a 22% increase from the previous year. Additionally, the company reached $317 million in statutory earnings for the year ending June 30, 2023, indicating a 25% increase over the prior financial year.