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Posted: 2024-08-09 02:00:05

“Crown is able to comply with upcoming requirements as part of the NSW Casino Control Act,” a Crown spokesperson said.

Gaming Minister David Harris declined to comment about the alleged discussions or whether a decision has been made. The casino regulator, the NSW Independent Casino Commission, will be informed of any changes and is currently weighing up whether to reinstate Star Sydney’s licence to operate its casino after approving Crown Sydney to operate independently in April.

The Star’s chief executive Steve McCann asked the government to reconsider so the company would be better prepared to facilitate mandatory carded play.

The Star’s chief executive Steve McCann asked the government to reconsider so the company would be better prepared to facilitate mandatory carded play.Credit: Dominic Lorrimer

A Liquor & Gaming spokesperson said the government continues to work with both casinos on the implementation of mandatory carded play.

“This includes ensuring the technology is established in the right way from the very beginning,” a spokesperson said.

The NSW Independent Casino Commission is due to release the findings of Adam Bell, SC, this month in a report, following a lengthy inquiry into The Star’s culture in response to concerns expressed by its special manager, Nicholas Weeks.

The regulator confirmed last week it has moved to extend Weeks’ tenure at Star Sydney until at least March next year, which indicates the casino is unlikely to be shut down entirely.

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Unlike Bell’s first inquiry into The Star in 2021, no breaches of the anti-money laundering or counterterrorism act were raised over the three weeks of hearings which featured the bulk of The Star’s current and former leadership.

Despite this, more than 10 executives have left the struggling business in recent months due to an array of embarrassing cultural failures exposed by the hearings, which included a suggestion from former chair David Foster to launch a shareholder-led class action against the regulator and Weeks.

Crown Melbourne, which does have poker machines, has already transitioned to card-only as part of a similar compliance regime in Victoria. Sources within the business familiar with the privately listed company’s books say the bulk of Crown Melbourne’s remediation spend this year has gone into the cashless transition, and revenue from its gaming floor has fallen by more than 5 per cent since its introduction.

The Star is due to unveil its results for the 2024 financial year on August 29. The government’s decision could change the outlook for the Sydney business over the next financial year. The group issued a sombre trading update in June, following poor trading and sustained costs associated with its regulatory compliance.

It now expects to make $1.68 billion in total revenue this financial year, a fall from 2023’s $1.8 billion. At the time, 2023’s net loss of $2.44 billion was expected to be the low point for The Star, but it has continued to be plagued by setbacks since and is still bracing for a multimillion-dollar penalty from the financial regulator.

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