Star Entertainment Group Ltd., a leading casino operator in Australia, is facing an uncertain future following a damning report that called into question its ability to hold a casino license in Sydney. The report, conducted by lawyer Adam Bell, highlighted significant issues such as dysfunctional leadership, ethical failings, and a toxic corporate culture that continue to plague the company, hindering any progress.

A recent article by Bloomberg shed light on the pervasive lack of ethics and leadership within the corporation. An independent ethics evaluation commissioned by The Star revealed the existence of “shadow values” that prioritized profit over integrity and fostered a culture of internal politics and self-preservation among staff.

Despite some improvements in transparency and cooperation under the new CEO, Steve McCann, the regulator emphasized that he has a limited window of time, possibly just a few weeks, to demonstrate that he can lead the company back to a position where it could be deemed fit to operate the Sydney casino. However, the report also criticized The Star’s directors, deeming them unfit for their positions and part of the broader problems plaguing the casino.

The Star’s Sydney casino has been under intense regulatory scrutiny since a 2022 report revealed extensive compliance failures, including a lack of controls against money laundering, disregard for China’s capital controls, and promotion of problem gambling. The NSW government has taken steps to address these issues, but progress has been slow.

The New South Wales Independent Casino Commission is currently assessing the implications of Bell’s report, with Chief Commissioner Philip Crawford noting that The Star’s governance and cultural issues have been building for decades, culminating in the current crisis. The severity of the problems facing The Star has raised doubts about its ability to reform under current leadership, leaving its future in question.