The Star Entertainment Group Faces Trading Suspension During Financial Reporting Delay

The Sydney-based Star Entertainment Group declared on Monday morning that company had been taken off the Australian Securities Exchange (ASX) market. This ruling was made as a result of the casino operator’s failure to turn in its annual financial report by the August 31, 2024 deadline.

Star requested the trading suspension last Friday, in conjunction with the publication of Adam Bell SC’s most recent report on the business’s activities. The Independent Casino Commission of New South Wales (NICC) ordered the report, which examined the group’s governance and compliance in further detail.

Star was among six companies suspended from trading on Monday for breaching ASX Listing Rule 17.5, which mandates the timely submission of periodic reports. Star had previously committed to publishing its financial report by August 31 but failed to meet the deadline.

The Australian Financial Review reported that Star is preparing to announce a $1.4 billion write-down of its casino assets and implement a major cost-cutting program. The company is seeking refinancing to support operations over the next six months and maintain its Sydney casino license.

Bell 2 Report Validates Regulatory Concerns

The NICC’s second inquiry, known as Bell 2, was launched in February 2024 and released last Friday. It confirmed the issues that prompted the second investigation, despite some improvements since the first Bell inquiry in 2022. Star Sydney has been under the supervision of a state-appointed manager, Nick Weeks, whose term has been extended multiple times and is set to continue through September.

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The NICC acknowledged progress in areas such as transparency and cooperation but emphasized ongoing concerns. The commission noted that Star had not fully addressed the governance and cultural issues identified in the first Bell Report, which outlined anti-money laundering and social responsibility failures dating back years.

NICC chief commissioner Philip Crawford stated, “The Bell Report reveals a company that had not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report. It has only very recently turned its attention to dealing with challenges that should have been prioritized earlier.”

The NICC is currently reviewing Bell’s findings, including four compliance breaches, and will determine the next steps for the casino operator.

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