The Star Sydney has been told it has six months to regain its casino license or it could face the possibility of closing.
Following reports of extensive anti-money laundering and counterterrorism failing in an inquiry by NSW Independent Casino Commission (NICC) in October last year, the casino’s license was suspended and the venue has been run by an independent manager. However, the manager remains unsatisfied with Star’s ability to run its Sydney premises without supervision, according to the Sydney Morning Herald.
A NICC spokesperson confirmed The Star has a six month deadline to prove it can run independently or it could have to shutter its doors.
“The NICC is not satisfied The Star has reached a point where the licence suspension can be lifted and it can run its casino without the supervision of the manager,” the spokesperson said.
“If they can’t prove they are capable of operating with a conditional licence over the next six months, the manager will be retired, and the doors will close.”
Star told the market last week that regulators for the NSW and Queensland businesses had extended the terms of their independent managers to allow the respective casinos more time to take steps to be granted a license. The Star believes this to be the NICC’s final extension of the manager’s terms.
The NSW regulator is concerned that, if left on its own, The Star will resort back to its profit-driven culture, however a spokesperson from the casino said it was focused on its transformation.
“We know the implementation of the remediation plan in NSW and Queensland requires the utmost rigour and discipline,” The Star spokesperson said.
“We’re also pleased to continue working with Nick Weeks following the extension last month of his role as manager of The Star Sydney casino,” the spokesperson continued.
The Star’s stock price currently sits at a third of what it did at the beginning of the year. Down to 56 cents from $1.63.
