The NSW Independent Casino Commission (NICC) has provided the necessary approvals for Bally’s Corporation (Bally’s) to become a substantial shareholder of The Star Entertainment Group (TSEG).
Bally’s, and its related entities and key individuals associated with this transaction, have cleared a comprehensive probity investigation, conducted by the NICC and Liquor and Gaming NSW (L&GNSW), which has assessed a range of both financial and non-financial factors related to the company’s suitability and the suitability of key individuals involved in Bally’s.
Following this investigation, the Bally’s proposed corporate and individual close associates have today been approved as ‘suitable persons’ to be associated with the management and operation of The Star Sydney casino, subject to appropriate conditions.
The NICC has also approved the increased shareholding of Bally’s as a ‘major change’ in the state of affairs of the casino operator of The Star Sydney, which is required under the Casino Control Act 1992 (The Act).
The NICC’s Chief Commissioner Philip Crawford said Bally’s had submitted a plan to improve on The Star’s financial performance, which it will be required to report back on regularly as a condition of the approval.
“Bally’s Corporation and its associated entities have undergone a rigorous assessment and ultimately satisfied the NICC that there are no adverse findings that would prevent them from becoming close associates of The Star,” Mr Crawford said.
In addition, the NICC has approved a proposal from Investment Holdings to increase its shareholdings in The Star.
Investment Holdings and its key individuals, including Bruce Mathieson Snr and Bruce Mathieson Jnr, have previously received close associate approval from the NICC.
“Both the close associate approvals and the major change approval for The Star will allow Bally’s and Investment Holdings to move forward with their financial and operational commitments in respect of The Star which we anticipate will be happening very soon,” Mr Crawford said.
“Bally’s and Investment Holdings have assured the NICC they will continue the essential remediation work required at The Star so that it can continue to remedy the serious concerns raised in the two Bell inquiries.”
The NICC’s decision does not affect the current status of The Star’s licence which remains suspended. The NICC-appointed manager Nick Weeks continues to have oversight over casino operations.
The Star remains subject to rigorous remediation milestones and reporting conditions relating to its AML/CTF, gambling harm, governance and culture uplift programs.
Probity investigations are conducted under The Act and entail scrutiny of ownership structures, assets, trusts and investments, as well as interactions with other regulators and any previous disciplinary outcomes.
Under The Act, regulatory approval is required for a ‘major change’ in the state of affairs of a casino including shareholdings above 10 per cent.