(Recasts throughout with report findings, Star's comments in paragraphs 8-9)
SYDNEY, Oct 17 (Reuters) - Australia's No.2 casino operator Star Entertainment will be able to keep its struggling Sydney casino open but has been ordered to pay a fine of A$15 million ($10 million), the New South Wales state gaming regulator said on Thursday.
A regulator-appointed manager will continue to have oversight of Star's casino operations in Sydney until March 31, 2025, when the NSW Independent Casino Commission (NICC) said it would reassess Star's suitability to regain its licence.
An independent commission in 2022 found Star had failed to prevent money laundering and criminal activities. Star's licence to operate its lucrative Sydney casino was suspended then and it was ordered to pay a A$100 million fine and a regulator-appointed manager was appointed to manage its Sydney casino.
In February, the NICC launched a second investigation into Star, saying it was not satisfied with the company's progress on its remedial measures.
The second inquiry identified "continuing compliance failures and operations at The Star that fell far short of suitability," NICC Chief Commissioner Philip Crawford said after the results were announced on Thursday.
"Despite more prescriptive supervision that prevented the type of misconduct seen in the first inquiry, numerous shortcomings in governance, regulatory compliance, technology and risk management remain, including in areas that The Star claimed it had remediated," Crawford said in a statement.
The beleaguered company last month posted a second straight multi-billion dollar annual loss as it wrote down the value of venues and said it might sell assets to raise cash.
Trading in the company's shares was temporarily paused as Star acknowledged it had received the inquiry findings report from the regulator.
"The Star will make an announcement after it has considered the correspondence from the NICC," the company said.
($1 = 1.5013 Australian dollars)
(Reporting by Renju Jose in Sydney; Editing by Tom Hogue and Jamie Freed)
((renju.jose@thomsonreuters.com;))
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