The Star Entertainment Group has officially responded to a show cause notice issued by the New South Wales Independent Casino Commission (NICC). This development marks a crucial moment as the commission seeks clarity from The Star regarding breaches identified in the second Bell Report.
Issued two weeks ago, the NICC’s show cause notice highlights four “significant” breaches detailed in the final report of the 2024 independent inquiry into The Star’s operations. Today, The Star has confirmed that its response addresses the issues outlined in the Bell Report. Additionally, further submissions were made concerning The Star Sydney’s suitability to maintain its casino license, updates on its remediation plan, current financial health, and proposed strategies to tackle ongoing financial challenges.
In a related update, The Star also announced the completion of the sale of the Treasury Brisbane Casino building, netting proceeds of AU$60.5 million (US$41.9 million). Earlier reports this month suggested the sale was to Griffith University.
Today also marked the resumption of trading for The Star’s shares on the Australian Securities Exchange (ASX), following a suspension due to delays in submitting financial results by the established deadline. Despite this, the release of FY24 results revealed a 71% decline in net profit, alongside a statutory net loss of AU$1.69 billion, significantly impacting the share price. As of 14:57 UK time, shares were trading at AU$0.25, reflecting a reduction of 44.4% from previous levels.
The Star’s response and the associated financial disclosures are pivotal as the group navigates serious challenges both in regulatory compliance and financial stability.
Stay tuned for further developments as The Star aims to address these critical issues and restore confidence in its future operations.
