Star Entertainment will wait to release its H1 results because the New South Wales Independent Casino Commission (NICC) has started a second investigation into the casino operator.
 Kambi Q1
 The probe, which was announced yesterday (February 19), will last for 15 weeks and the final report will be ready by May 31.  The inquiry will be led by Adam Bell SC, who wrote the first Bell report. He will look at how Star has followed the recommendations from the previous inquiry.

 After the news, Star asked the Australian Securities Exchange (ASX) to stop trade. 

 The operator has also said that it will wait to announce its results for the first half of the 2024 financial year.  Star was supposed to reveal the results tomorrow, February 21, but that will now be put back.  The operator claims that in the next several days it will give a new release date.

 Star: Inquiry will give an unbiased place to talk
 In response to the probe, Star said it is happy with the NICC's conclusion.  Star argues that the investigation will give it a "objective forum" to show that it can get back to being able to get a licence in NSW.  In September 2022, it was said that the state was not fit to have a casino licence.

 It said, "Star plans to take part in the inquiry in a way that is open, honest, and helpful."  "Also, even though the inquiry is expected to last for the next 15 weeks, which is a very important time for Star to carry out its multi-year remediation plan, Star will put all of the resources it needs into the inquiry to make sure it meets all of its requirements and expectations."

 "Finally, Star says that the inquiry is looking into whether Star Sydney is fit to "be concerned with or associated with the management and operation of Star casino in Sydney." 

 Star also talked about how the NICC is giving it "every chance" to show that it can be suitable.  Star says it will give the regulator all the information it needs to make a decision about its future in NSW.

 "The operator remarked, "Star welcomes the chance to show that it can become suitable again."  "We will keep doing everything we can to work together with regulators, including the NICC and its chosen manager. 

 "Star is still committed to and focused on following through on its plan to fix things and win back the community's trust."

 The second ring of the Bell for Star
 There are a few main areas that the second Bell report will look at.

 The second investigation will look into the culture at Star as well as what happened after the initial report.  This covers the culture of managing risks and the lines of reporting and management.

 The probe will also look into whether Star has been able to get the money it needs to keep Star Casino going.

 Adam Bell SC's first report talked about problems with anti-money laundering and social responsibility at Star Sydney that had been going on for years.  A year later, a report on Star Sydney's progress revealed that the casino had put 22 of the 30 suggestions from the first assessment into action.

 In the end, the report led to the decision that it was not acceptable for a licence in NSW.  Star is also in a tough spot in other places, such Queensland, where they are facing a similar ban, four class actions, and a possible AUSTRAC penalties.  Most of these have to do with links to Chinese junket operators.

 How actions made by regulators affect financial performance
 It's not surprising that regulatory action has hurt Star's bottom line.  Star lost AU$2.4 billion (£1.25 billion/€1.46 billion/US$1.57 billion) in the 2023 financial year.

 At the time, Star said that $2.8 billion of their expenses were "significant items."  These were about the fines the operator had to pay. 

 They include a $2.2 billion non-cash impairment for property and goodwill assets in Sydney, Gold Coast, and Treasury Brisbane.  It also mentioned $595 million in regulatory and legal expenditures, $54 million in debt restructuring charges, and $16 million in redundancy costs.

 After taking into account those costs and a positive and expanding EBITDA of AU$317m, the company lost AU$2.4bn after taxes.

 The delayed results announcement will indicate how the decisions affected Star's performance in the most recent H1.