Star Entertainment Group Decides Inadequate To Casino License, Reveals Inquiry Results
A NSW investigation into The Star Entertainment Group's operations and culture concluded The Star remained unfit to independently manage Sydney casinos. Kaspar Conde, a lawyer who helps with the investigation, stressed that no progress had been made because The Star was initially deemed unfit to hold a casino license in October 2022. The investigation stopped short of recommending a full closure, but highlighted the need for continued outside oversight. Kaspar Conde, who led the investigation on behalf of Adam Bell, noted that The Star took six months to make the treatment effort but failed to make enough progress, according to The Sydney Morning Herald. "There is evidence that The Star Entertainment Group took six months to make the treatment journey, but they were less than 20 months old... The remaining 14 months are gone," Condé said, highlighting the company's slow pace of improvement. After a three-week hearing, Bell is currently considering filing and will present a second report on the company to the NSW Independent Casino Commission by the end of July. The results of the report could potentially lead to a permanent closure of the casino. Throughout the hearing, no witnesses, including current board members, former executives, or chairmen, have claimed that The Star is ready to operate without external oversight. Since the suspension in 2022, the casino has been under the supervision of Nick Weeks, an independent supervisor. Conde argued that oversight should continue, citing recent events such as the failure to prevent a $3.2 million theft from an ATM that malfunctioned as evidence of ongoing internal control issues. "Those kind of criminals who can gather those kinds of criminals in a short time, make 1,800 transactions, and take out $3.16 million, are not the kind of people who have to be somewhere near a casino," Conde said, highlighting the serious flaws in The Star's security and fraud prevention. A tense relationship between management Nick Weeks' tenure as an independent executive has already been extended three times due to ongoing doubts about the company's ability to reform. Tensions between Weeks, including former chairman David Foster and former CEO Robbie Cooke, and the former management team became clear. The investigation revealed text suggesting plans for a class action lawsuit against Weeks and an attempt to remove him from his position. Conde suggested that Foster and Cook's exit could improve the company's prospects for recovering licenses in the future. But he warned The Star not to set specific timelines to suit it, saying that real action and factual developments represent readiness rather than mere opportunities and promises. If that view holds in Bell's final report, uncertainty could drag on for the group's 3,000 employees and investors. "Current vacancies in the group leadership team offer opportunities, but the question is whether they take them. In the fitness review, we submit that real action and factual development will tend to be more important than opportunities and words," Condé said, emphasizing the importance of concrete action over commitment. The star is currently "leaderless and depleted," losing nearly a dozen senior executives over the past year. The company urgently needs to fill key positions, including new permanent CEOs, CFO, chief legal officer, chief transformation officer, and chief customer officer. In addition, it needs to appoint a new head of Gold Coast Casino and a new sponsorship liaison for Sydney following Jessica Mellor's recent resignation. The ongoing scrutiny and required appointments highlight the significant challenges facing the restoration of star status. The outcome of Bell's final decision will be crucial in determining the casino's future operational structure and its sustainable viability as a major entertainment company in Sydney.