Australia’s Star Entertainment Group appears to have defended the efficacy of its remediation plan in a lengthy response to the news it will face a second inquiry into its suitability to hold a casino license for The Star Sydney.
The company was reportedly caught off-guard by the announcement from the NSW Independent Casino Commission (NICC) earlier this week, which will again see Adam Bell SC lead the inquiry barely 18 months after he originally recommended Star be found unsuitable following a previous inquiry held in 2022.
The second inquiry – which the NICC said it has called due to concerns over the effectiveness of Star’s remediation efforts – will start immediately and run for 15 weeks, with a final report to be submitted to the NICC on 31 May 2024 and before the term of the independent manager appointed to oversee Star’s remediation efforts expires in June.
On Tuesday, Star filed its response to this latest development in which it promised to participate in the inquiry in an “open, transparent and facilitative manner” and said it welcomed an “objective forum in which to demonstrate it is capable of returning to suitability with particular reference to the actions that have been put in place since the Bell report was issued.”
However, it also noted that its multi-year remediation plan “was developed with oversight and input from the [independent] manager and … has been approved by the Queensland Attorney General.”
It remains to be seen how the Queensland government responds to this latest action from its southern counterpart given that Star is due to open its new AU$3.6 billion Queen’s Wharf Brisbane development – undoubtedly one of Queensland’s most significant development projects in recent years – in August.
Star also noted that the inquiry will run during a “critical period” for the company in executing against its remediation plan but said it would nonetheless “dedicate all necessary resources to the Inquiry to ensure it meets all its requirements and expectations.”
It added, “The Star appreciates the opportunity to demonstrate it has the ability to regain suitability and will continue to do all in its power to work cooperatively with all its regulators including the NICC and its appointed manager. The Star remains committed to and focussed on executing its Remediation Plan and earning back the trust of the community.”
In a separate filing, Star revealed it was delaying publication of its financial results for the six months to 31 December 2023 while it determines any necessary amendments arising from the announcement of the inquiry.
The 1H24 results had been due for release on Wednesday.
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