The Star is in a “pretty sad state” after the embattled casino operator got hit with millions of dollars in extra fines and had its Sydney licence suspension extended.

The company received the $15 million penalty after a second probe revealed further significant failings, the NSW Independent Casino Commission said.

It came two years after the casino first had its licence suspended and was fined $100 million following an earlier inquiry.

Chief commissioner Philip Crawford

“If Sydney Star fails, The Star group will fail,” chief commissioner Philip Crawford says. (Dean Lewins/AAP PHOTOS)

Star Entertainment Group had started to clean up its act but huge questions remained around competence and capability, chief commissioner Philip Crawford said.

Extending the Sydney licence suspension and independent manager’s appointment was aimed at protecting employment.

“If Sydney Star fails, The Star group will fail, and that’s a group that employs 9000-plus people … it would affect the lives of a lot of people,” Mr Crawford said on Thursday.

“There’s no coming back if you take the licence away.”

The commission will reassess the casino’s licence suitability in March.

Star Sydney manager Nick Weeks will continue overseeing the operations, allowing gaming to continue.

Senior management will be “refreshed”, as amendments to the casino’s licence offer more prescriptive requirements about board and management personnel.

The second inquiry revealed internal messaging between former senior executives getting “ready for war” with the regulator.

Mr Crawford said The Star’s chief executive Steve McCann had established a “much healthier relationship” with the commission since his appointment in July.

He previously guided similarly besieged casino group Crown Resorts through a takeover but would need help in leadership and management.

A review of management at the Star Casino must be completed by the end of the financial year. (Flavio Brancaleone/AAP PHOTOS)

“He’ll be flat-out trying to recruit in a number of key areas for this business, and he needs to,” Mr Crawford said.

“Fundamentally, it’s a good business but it’s in a pretty sad state and it needs to be fixed up.”

The significant breaches identified included fraud against the casino, failure to complete source of wealth analysis, and logging false welfare checks

The licence was first suspended after anti-money laundering and counter-terrorism failings emerged in the 2022 inquiry.

Mr Weeks is also overseeing The Star’s Queensland venues, with a decision about licences for the Brisbane and the Gold Coast casinos due in December.

Star said it would keep working with regulators in both states.

“The Star looks forward to continuing its constructive engagement … as it embeds a sustainable remediation of the group and progresses a viable pathway toward suitability,” it said in a statement.

The NSW government made changes to casino taxes in August 2023 so Star would pay a lower, progressional levy and agree to maintain more than 3000 jobs until 2030.

A higher levy planned by the former NSW coalition government would have killed the business, Labor Treasurer Daniel Mookhey said at the time.

David Harris says hard-working people should not have to pay the price for Star’s mismanagement. (Bianca De Marchi/AAP PHOTOS)

Gaming Minister David Harris said the government was committed to a safe and responsible casino sector.

“The agreement increases casino tax while protecting the livelihoods of more than 3000 workers,” he said.

“Hard-working people should not have to pay the price for mismanagement at The Star.”

The United Workers Union is overseeing the agreement.

Its casinos director Andrew Jones said delegates advocated for job security in consultations with inquiry representatives and Mr Crawford.

“We are pleased the regulator has recognised the benefits of Star’s jobs to workers, the company, their communities and NSW,” he told AAP.

“Our priority remains ensuring the voices of casino workers are heard, and they receive the job security they deserve.”

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