The report, released on Tuesday after a months-long royal commission-style inquiry by the NSW gaming regulator, found the casino was unsuitable to hold a casino licence.

As a result, the newly established NSW Independent Casino Commission said it had issued a show cause notice, forcing the casino group to explain why it shouldn’t face disciplinary action.

Revocation of the casino licence and the issuing of fines are among the options available.

“Doing nothing is not an option,” Chief Commissioner Philip Crawford told reporters.

“It’s not a question of pin the tail on the donkey – it wasn’t one individual who was masterminding the conduct and attitude of the casino.

“The institutional arrogance of this company has been appalling.”

No adverse findings were made about the directors, with Mr Crawford finding they “didn’t have a clue what was going on in their own casino”.

The inquiry was sparked after media reports alleged Star enabled suspected money laundering, fraud and foreign interference, and organised crime, at gaming venues including its Sydney casino.

Senior management admitted junket operator Suncity continued operating inside Star despite a Hong Kong Jockey Club report in 2019 linking the group to triads, “large scale” money laundering and drug trafficking.

Star managing director Matt Beiker resigned inside the third week of hearings, after an auditor said he’d been berated by the casino boss for reporting the organisation was not doing enough to comply with anti-money laundering and counter-terrorism financing laws.

He later blamed a poor culture at the casino for its failure to clamp down on money laundering and misleading banks and the regulator, revealing he personally green-lit an $11 million line of credit to a high roller and okayed illegal lending.

Further revelations led to the resignations of board chairman John O’Neill, chief financial officer Harry Theodore, chief casino officer Greg Hawkins and chief legal and risk officer Paula Martin.

Star’s former group treasurer Sarah Scopel also quit her similar role at Woolworths Group.

The ASX-listed Star Entertainment Group entered a trading halt on Monday morning due to the expected release of the report.

Its shares closed on Friday at $2.66, nearly 40 per cent lower than this time last year.

The casino group also faces an ongoing inquiry into its Queensland operations.

That inquiry has heard of staff falsely recording $55 million in gambling transactions as hotel expenses and the continued admission of a high-roller for years, despite his ban from casinos in two states and links to the Italian mafia.

-AAP