Atmosphere at the Grand Opening of DraftKings Sportsbook at Resorts November 20, 2018 at Resorts Casino Hotel in Atlantic City, New Jersey.
Atmosphere at the Grand Opening of DraftKings Sportsbook at Resorts November 20, 2018 at Resorts Casino Hotel in Atlantic City, New Jersey.

Billion-dollar gambling firm Star Entertainment's shares were on trading halt in Australia, after an NSW Independent Casino Commission report highlighted its significant failures in governance and compliance, casting doubts on its capacity to run its Sydney casino.

Star Entertainment also decided to pushback publishing its annual financial results, following the release of the report, reported Shepparton News.

The NSW Independent Casino Commission probed for a second time into the company's workings, which has led the team to understand that Star Entertainment had failed to adequately address its cultural shortcomings, Reuters reported.

The company was initially exposed for anti-money laundering and counter-terrorism failures in October 2022, after which, its Sydney casino license was rendered redundant.

The license is still in limbo after a second probe once again highlighted inadequacies. Meanwhile, its Queensland casinos remain operational despite potential suspension and ongoing compliance breaches.

The inquiry shone a light on a AU$3.2 million scam at Star Entertainment, as well as significant regulatory violations. The findings revealed staff members fabricating documents to hide prolonged gaming sessions without seeking assistance. An examination of culture revealed "shadow values" that put money before morality. There will be no further trading while the company's future is examined by the NSW Independent Casino Commission.

The chief commissioner of NSW regulator, Philip Crawford, called out Star Entertainment for its slow reaction to previously highlighted governance and cultural issues, saying that the current report confirmed the concerns that sparked the second inquiry.

"It has only very recently turned its attention to dealing with challenges that should have been prioritized earlier," he said.

Internal messaging between the former executives of the company also revealed their hostile attitude toward the scenario, as they discussed going to "war" with regulators.