Australian casino giant Star Entertainment is still facing significant hurdles but it is on the way to improvement.
The casino and hospitality behemoth continues with the implementation and execution of its remediation plans aimed at improving its practices following some serious regulatory challenges. As David Harris, the Minister for Gaming and Racing of New South Wales (NSW), shared in a report, the gambling company has so far managed to successfully implement more than two-thirds of the recommendations made in the Bell Review.
As Casino Guardian previously reported, in September 2021, the NSW regulatory body appointed the independent legal counsellor Adam Bell SC, who was entitled to review the operations of The Star. The suitability of the gambling giant’s property to hold an operating permit was brought into question at the time following the revelations of a large number of regulatory failures.
Both Mr Bell and the NSW gambling watchdog eventually found Star Entertainment unfit to hold an operating licence in the state due to some serious governance issues, risk management violations, and cultural problems. Furthermore, Star Entertainment was found to have disrespected some of the NSW regulatory rules. The company was also involved in a number of class action lawsuits.
As a result of the aforementioned failures, Star Entertainment was required not only to pay monetary penalties but also to implement some remediation measures. If not, the Australian gambling giant would lose its operating permit.
Star Entertainment Remains on the Road to Improvement Despite Financial and Regulatory Challenges
Although it failed to comply with gambling regulations and regulatory rules in New South Wales, Star Entertainment is currently making a serious effort to do better and follow the suggested remediation measures that were unveiled by Adam Bell SC in his review. According to Minister Harris, the company has so far managed to implement a total of 22 of the 30 recommendations made by the Commissioner.
On the other hand, the casino company released an update, revealing that it intended to continue working hard in order to implement the remaining eight recommendations of Mr Bell. Star Entertainment pledged that it will work in close collaboration with the relevant regulatory bodies and the appointed manager to do so.
However, the operator warned that many of the remaining recommendations are quite complex, which basically means that the company is likely to need more time to finalize their implementation. Star Entertainment further shared that many of Adam Bell SC’s recommendations are set to be integrated into the remediation plan of The Star casino.
While doing so, the company is trying to bring some changes to its corporate structure. So far, Star Entertainment appointed Peter Hodgson as a non-executive director to become one of the people in charge of the company’s efforts on the way to recovery. Unfortunately, while doing so, the company is experiencing some financial difficulties. Most recently, the Australian gambling giant announced a full-year loss of AU$1.6 million and is also facing some setbacks as a result of the regulatory costs it was forced to cover.
- Author
Olivia Cole
