The Star Sydney will continue to be overseen by a government-designated monitor until at least the end of September.
The Star Sydney's casino operations have been managed by Nicholas Weeks since October 17, 2022, when the New South Wales Independent Casino Commission (NICC) designated him to oversee the gaming area. Last Friday, NSW’s gaming authority prolonged Weeks’ oversight for an additional six months, lasting until Sept. 30, 2025.
The Star's gaming license was revoked following a government investigation in NSW, which found that the company, similar to its main rival, Crown Resorts, failed to effectively prevent undesirable individuals and criminal organizations from accessing its gaming floor and safeguard its casino cages from operating as money laundering operations.
The Star was permitted to keep its gaming privileges, contingent upon the company implementing numerous corrective measures and revamping its corporate governance, a lengthy process that is still ongoing.
Advancement, Not Flawlessness
In announcing the six-month extension of Weeks’ oversight, NICC Chief Commissioner Philip Crawford stated that the agency is satisfied with The Star’s efforts to qualify for retaining a gaming license. Nonetheless, the financial instability concerning the company, which operates casinos in Queensland — The Star Gold Coast and The Star Brisbane — has significantly hindered Star’s reforms.
"We welcome progress in The Star’s remediation efforts and are confident the company is moving in the right direction with its remediation plans,” said Crawford. “The next six months is a critical phase for The Star as it will need to show further progress with its remediation activities while also stabilizing its finances.”
Extending Week’s oversight is beneficial for The Star Sydney, since a decision to end the monitoring would have led to the suspension of the casino’s gaming operations.
The Star Sydney features approximately 1,500 slot machines, known as pokies in Australia. The gaming area boasts approximately 140 live dealer table games.
Appropriateness Objective
In addition to its NSW operations, The Star was deemed inappropriate for a gaming license in Queensland due to an inquiry that arrived at similar findings regarding lapses in regulatory compliance. The Queensland government postponed a licensing suspension for The Star until September 30 last week.
Queensland government officials are satisfied with the progress made by The Star in remediation.
“Based on the advice of the special manager, we are satisfied The Star has been continuing to make positive progress under the agreement. The extension will provide The Star with additional time to deliver on its outstanding commitments while keeping its doors open,” said Queensland Attorney-General Deb Frecklington.
Steve McCann, CEO and Managing Director of Star Entertainment Group, states that the aim is for the organization to achieve suitability findings in both New South Wales and Queensland by October 1, 2025.
“The Star recognizes the importance of continuing to deliver on its commitments under the remediation plan and returning to suitability,” McCann said.
The Star Entertainment Group remains the focus of acquisition discussions. The company has attracted interest from Bally’s Corporation, which proposed a financing deal of AU$250 million (US$156 million) earlier this month for a 50.1% stake in the business.
The Bally’s proposal would enable The Star to retain its Brisbane casino, which The Star has consented to sell to two of its major shareholders — Far East Consortium and Hong Kong’s Chow Tai Fook — for only AU$50 million.