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," Star said.

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