Operator News
Australia – Star’s Interim Chairman outlines Renewal Plan for troubled operator
By Phil - 16 September 2022
Star Entertainment Interim Chairman Ben Heap has issued a battle-cry of a Renewal Plan, outlining how the beleaguered operator can save its license for The Star Sydney, having been told by the Bell report it is not fit to hold the licence.
Mr. Heap said: This Report makes for difficult reading; we acknowledge its findings and recommendations and the gravity of the matters as set out in the Report. We also acknowledge the public criticism of our governance, behaviours and culture, including by the NSW Independent Casino Commission Chief Commissioner, Mr Philip Crawford. We have fallen short of expectations. The people of NSW placed their trust in us as the holder of a casino license, and we have not lived up to that trust. For that we offer a sincere and unreserved apology.”
“Over the coming days, we are working to respond to the notice from the NSW Independent Casino Commission as to why we should be able to continue to operate. We are taking stock of our existing
programs, the changes made to date, and planned initiatives. We recognise the seriousness of the
matters raised by Mr Bell and Mr Crawford and we are determined to address them and to do so with
urgency.
In the meantime, I want to share with you our immediate priorities. It is clear from the Report that we need to fundamentally transform our culture. We need more transparency, more robust governance, and greater accountability. At its heart, we need to be a workplace where our team members feel free to raise concerns, where we have open and honest dialogue with our regulators and Independent Monitor, and where our leadership is both vigilant and listens when concerns are raised. We need to ask not only “Can we?”, but “Should we?”, and act swiftly where there is an issue. I accept that there have been times we’ve been arrogant and closed off to criticism. That will not be the case in the future.
Our goal is to earn back your trust and the trust and confidence of the NSW Independent Casino Commission, and indeed all our regulators. I recognise that we won’t be judged by our words, but by our actions. You have my commitment, and that of my fellow directors and senior management team, that we will do everything in our power to make the necessary improvements.
We are developing and will implement a comprehensive remediation plan, which we refer to as our Renewal Plan, to serve as the Company’s integrated roadmap for improving our governance, culture and controls. We will not only fix the issues raised in the Report but will examine and address their root causes. Given the extent and breadth of the issues raised, our Renewal Plan is a multi-year plan, to fully address and embed the fundamental changes required in all aspects of our business.
“We are developing and will implement a comprehensive remediation plan, which we refer to as our Renewal Plan, to serve as the company’s integrated roadmap for improving our governance, culture and controls,” Heap said.
“We will not only fix the issues raised in the Report but will examine and address their root causes. Given the extent and breadth of the issues raised, our Renewal Plan is a multi-year plan, to fully address and embed the fundamental changes required in all aspects of our business.
“Examples of actions we’ve taken to date include introducing stronger controls, enhancing our regulatory compliance functions and training, adding new members to our Board, rebuilding our senior leadership team, separating our Risk and Legal functions, hiring a new Chief Risk Officer, and voluntarily appointing an Independent Monitor to oversee our progress.
“We acknowledge there is much more to be done and we will do it working constructively and transparently with the NSW Independent Casino Commission, our other regulators, and our Independent Monitor,” he added.
Confirming that Star is already working on its response to the Bell Report, Heap said the company needed to overhaul its culture after it was found to have deliberately employed illegal tactics to dodge regulatory supervision.
Among the processes highlighted by the Bell Report were the illlegal use of China UnionPay cards to fund gambling at The Star Sydney, Star’s dealing with Asian junket operator Suncity Group and paying another Macau-based junket operator to disguise customer deposits with the Bank of China, Macau branch.
“We need more transparency, more robust governance and greater accountability,” Mr. Heap said. “At its heart, we need to be a workplace where our team members feel free to raise concerns, where we have open and honest dialogue with our regulators and Independent Monitor, and where our leadership is both vigilant and listens when concerns are raised.
“We need to ask not only ‘Can we?’, but ‘Should we?’, and act swiftly where there is an issue. I accept that there have been times we’ve been arrogant and closed off to criticism. That will not be the case in the future.
“Our goal is to earn back your trust and the trust and confidence of the NSW Independent Casino Commission, and indeed all our regulators,” he added. “I recognise that we won’t by judged by our words, but by our actions. You have my commitment, and that of my fellow directors and senior management team, that we will do everything in our power to make the necessary improvements.”
Examples of actions we’ve taken to date include introducing stronger controls, enhancing our regulatory compliance functions and training, adding new members to our Board, rebuilding our senior
leadership team, separating our Risk and Legal functions, hiring a new Chief Risk Officer, and voluntarily appointing an Independent Monitor to oversee our progress.
“We acknowledge there is much more to be done and we will do it working constructively and
transparently with the NSW Independent Casino Commission, our other regulators, and our
Independent Monitor,” he concluded.
