The valuation of the Sydney casino sends Star Entertainment shares plummeting.

Mr Bell’s 2022 report concluded that Star was incapable of holding its license and described its operations as “a case study of unethical behavior and cultural failure” that may have evaded taxes and engaged in prohibited gambling transactions value of 900 million US dollars.

The first Bell review, along with a similar investigation in Queensland, where Star operates casinos in Brisbane and the Gold Coast, led to the resignation of key figures including CEO Matt Bekier.

ICC Chief Commissioner Philip Crawford said on Monday his concern was the leadership team’s “ability and ability” to carry out its recovery programs.

“Serious and endemic”

Mr. Crawford was the head of the former casino regulator, the Independent Liquor and Gaming Authority, and was responsible for overseeing Star’s historical conduct.

“I’m just not sure to what extent they’ve addressed cultural reform, which Adam Bell said was serious and endemic and needed a lot of work,” Mr. Crawford said in an interview with the Review of finances. “We want to see the progress they have made in this particular area. It’s really important.”

The timing of the decision caused a stir in investment circles. A fund manager, who spoke on condition of anonymity due to corporate restrictions, said Star had taken significant steps in transforming its business.

“Frustration is growing over the impact suffered by current and new shareholders, rather than those who were responsible for the missteps,” the fund manager said. “This does not change the value of the assets.”

Star’s market capitalization has shrunk by more than $2.7 billion to $1.3 billion since the initial Bell investigation began. Still, the Sydney casino was lucrative, with gaming revenue of $838.9 million last year. MST Marquee brokers estimate the Star casino in Sydney could be worth around $1.3 billion.

But debt worries and difficult trading conditions, as well as a writedown in the value of its casinos, forced Star to seek financing twice last year. The first, at $1.20 a share, raised $800 million in February. The second offering in September raised $750 million at just 60 cents per share.

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