But what this expensive inquiry, complete with public floggings unearths, will go a long way to determining whether Cooke and the others should have fallen on their swords.

Loading

Realistically, if the inquiry finds that the cultural problems that landed The Star in the mess in the first place have not been addressed, there is little point in allowing the company to retain even the provisional licence it now has.

The company’s shareholders should be put out of their misery and the licence revoked.

Shareholders have already stumped up $1.5 billion over the past year to keep the casino group financially afloat. The first equity raising was undertaken at $1.20 per share and the second at 60¢.

The share price is now trading at around 54¢, so most investors will be deeply underwater on their investment.

Clearly, Crawford thinks the culture inside The Star hasn’t been sufficiently overhauled and that Cooke wasn’t sufficiently brought to heel by the regulator. It is also clear that the regulator wants the special manager who was put into Star, Nicholas Weeks, to have his contract extended.

The fresh inquiry will need to find some new evidence that there remains too much of the “old Star” in the “new Star”. And it needs to find a smoking gun on dysfunctional governance or culture to justify the need for a second inquiry.

As the second inquiry plays out, The Star is sitting with an axe above its head when it comes to the future of its operations in NSW, making little profit, thanks in part to competition from Sydney’s Crown and the hefty costs associated with rehabilitation.

Making matters worse, The Star is operating in an environment where there is enormous pressure on household budgets, which will in turn put pressure on the company’s revenue.

Arguably, given the findings of the first inquiries into Star and Crown that found them unsuitable to hold casino licences, they should have already been stripped of their licences. However, both the Victorian and NSW governments took the view that these casinos were big employers and vital to their state’s economies.

Private equity giant Blackstone acquired Crown and its financial problems, but Star remains publicly listed and its shareholders remain at the mercy of the state government, the regulator and the economy.

And finding well-qualified executives to fill the two top roles inside The Star won’t be easy. Who would want to wear a pinstriped suit with a target on its back?

The Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.