The Star casino has been given 14 days to explain why it shouldn't face disciplinary action after a scandalous report found it wasn't fit to hold a licence.
Embattled casino operator Star Entertainment is facing a licence cancellation and a $100 million fine after the industry regulator hit it with a show cause notice.
The NSW Independent Casino Commission (NICC) issued the notice on Friday, two weeks after a second probe found the Star's Sydney licence should not be returned to the operator.
The Sydney licence had first been suspended when an inquiry found damning evidence of anti-money laundering and counter-terrorism failings, although it has been allowed to keep the casino operating with a regulator-appointed manager.
Star has two weeks to respond to the commission's show cause notice and explain why it should not face disciplinary action for the breaches found in a second inquiry.
"The notice relates to four significant breaches detailed in the second Bell Report, including one that resulted in a cash fraud against The Star, a failure to run source of wealth checks on hundreds of members flagged as high risk, and fraudulent guest welfare entries that put already vulnerable customers at higher risk of harm," the commission said in a statement.
"The NICC has also issued correspondence to The Star in relation to its management, operation and culture, the adequacy and implementation of its remediation plan, and The Star's overall suitability to hold a casino licence."
Disciplinary action could include licence cancellation, a fine of up to $100 million, licence condition amendments, an enforceable undertaking or a letter of censure.
The second Adam Bell-led inquiry found the period since the initial 2022 findings was "marked by lost opportunities and missteps", including four significant compliance breaches.
They included a $3.2 million fraud that allowed Star clients to claim funds they had not won through a software glitch in "ticket in, cash out" machines.
Investigations also highlighted serious breaches of rules around three-hour limits on gaming without patrons taking a break, set up "for the protection of vulnerable patrons and their families".
Star Entertainment trading on the ASX has been suspended since the second probe was released and it failed to issue a financial statement on August 30.
The embattled casino operator said in a statement to the ASX late on Wednesday it was continuing to work with stakeholders and advisers about its financial condition.
"These discussions are ongoing and involve, among others, state governments, regulators and the company's lenders," The Star said.
AAP