The Star Entertainment has been suspended from trading on the Australian Securities Exchange (ASX) due to its failure to lodge financial results by the required deadline.
This suspension follows a trading halt the company itself initiated last Friday, citing the need to assess the impact of a recent critical report on its corporate governance and culture.
The report in question, authored by lawyer Adam Bell SC, was commissioned by the New South Wales Independent Casino Commission (NICC) as part of an ongoing investigation into Star Entertainment's compliance with anti-money laundering and counter-terrorism financing laws.
The investigation was prompted by concerns that the operator had not adequately addressed the cultural and governance shortcomings identified in a previous report by Bell in 2022.
The NICC’s Chief Commissioner, Philip Crawford, commented: “It was unclear whether The Star could feasibly operate under less supervision, when it was exhibiting past behaviours with its licence still suspended.”
Star Entertainment's licence to operate its Sydney casino has been suspended since October 2022.
This latest development occurred just days after Star Entertainment announced the opening of The Star Brisbane at Queen’s Wharf on 29 August 2024. The Brisbane project is a significant undertaking for the company, representing an AU$3.6bn (US$2.45bn) investment.
The first phase of this project involved the opening of the Neville Bonner Bridge, which connects the South Bank to The Star Brisbane’s facilities.
Despite this major milestone, the shadow of the Bell report looms large over the company. The opening of The Star Brisbane, which is expected to attract an additional 1.4 million visitors to Queensland annually, is a key part of Star Entertainment’s strategy to recover and grow in the face of regulatory and financial challenges. However, the trading suspension reflects the market's concern over the company’s ongoing governance issues.
Star Entertainment has been navigating a turbulent period, balancing significant investments in projects like The Star Brisbane with the need to address serious regulatory concerns, making the outcome of this situation critical for the company’s future.
