The Star Entertainment Group Ltd (ASX: SGR) share price isn't going anywhere on Monday.
That's because the casino and resorts operator's shares were slammed into a trading halt before the market open this morning.
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Why is the Star Group share price halted?
The company requested a trading halt on Monday after it received some more bad news.
Its request states the following:
The Trading Halt is necessary as The Star expects to make an announcement to ASX regarding correspondence received from the NSW Independent Casino Commission (NICC) on 19 February 2024 regarding the commencement of an inquiry under the Casino Control Act 1992 (NSW).
The Star Group share price is expected to be offline until Wednesday.
What's going on?
The NICC has announced a second inquiry into The Star, to investigate the Sydney casino's suitability. The regulator has appointed Adam Bell SC to conduct the inquiry, before the independent manager's term ends in June.
Chief Commissioner, Philip Crawford, commented:
There was a substantial shift required and The Star has had 18 months to demonstrate that it has the capability and resources to regain its casino licence.
However, when the manager was extended for the second time in December last year, the NICC wasn't satisfied that The Star was progressing its remediation in a timely fashion. Crawford adds:
The NICC has had concerns about the extent that remediation is attributable to the manager's oversight and direction versus what is being driven by The Star's reform agenda. Bell Two will bring us back to the Bell Report and The Star's efforts to regain its casino licence in the shadow of that report.
Bell Two starts today and will run for approximately 15 weeks. The final report is due to the NICC on 31 May. Crawford warned The Star:
There is much at stake for The Star, so the NICC is giving the casino every chance it can to demonstrate whether it has the capacity and competence to achieve suitability.
