Shares in the company were placed in a trading halt on Friday as the NSW casino regulator mulled the future of the gambling outfit's licence for the state capital.
A second probe into its operations, released in the morning, found the firm was "falling short" of what was required of a befitting manager.
The Star casino has continued to breach compliance rules. (Dan Himbrechts/AAP PHOTOS)
The Star's Sydney licence remains suspended after a first 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.
But in a report made public on Friday, the second Adam Bell-led inquiry declared the period since the last findings in 2022 had been "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 for a period of six weeks.
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".
It showed "systemic and extremely serious issues" involving multiple Star staff falsifying records to suggest they had intervened in players' extended gambling stretches when no interaction had taken place.
A Star-commissioned external culture review in mid-2023 highlighted a set of "shadow values" within the company, including "profit matters most" and "just get it done".
The NSW Independent Casino Commission on Friday said it was considering its next steps for the future of the suspended operator as it worked through the report's findings.
Shares in The Star were placed in a trading halt in part due to its receipt of the report, as well as the need to finalise other details for its 2024 financial year results, the company said.
Those results were due to be delivered on Friday but have been postponed.
The regulator's chief commissioner, Philip Crawford, said the latest Bell report validated concerns that prompted the second inquiry, highlighting a company that had not moved fast enough to address previously aired governance and cultural issues.
"It has only very recently turned its attention to dealing with challenges that should have been prioritised earlier," he said.
The inquiry also revealed internal messaging between former executives about going to "war" with the regulator and appointed casino manager.
The Star chair Anne Ward conceded in April the company was not fit to hold onto its licence, but she added the management team could be transformed in months.
The company has since appointed the former boss of rival Crown, Steve McCann, as its chief executive.
In addition to its Sydney facility, The Star also has casinos in Brisbane and the Gold Coast.
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