Star Entertainment, Australia’s second-biggest casino operator, can keep its Sydney casino running even though it still faces regulatory problems.
Star Casino’s Regulatory Oversight Extended Until 2025 Amid Ongoing Compliance Issues
The New South Wales Independent Casino Commission (NICC) slapped the company with a big fine of AUD15 million ($10 million) because it kept failing to follow the rules. Additionally, Star’s casino license suspension will last longer, and a manager picked by the regulator will keep an eye on the company until March 31, 2025.
This choice comes after an investigation headed by Adam Bell, which began earlier this year to evaluate Star’s attempts to fix its past regulatory problems. The NICC’s probe revealed ongoing issues in Star’s operations, governance, and risk management in areas where the company had said it had made things better. Even so, the NICC’s head commissioner, Philip Crawford, stressed that taking away Star’s license would cause big economic problems, since the company has over 9,000 workers and helps many suppliers.
In a recent statement, Crawford pointed out that Star’s new CEO, Steve McCann, had taken steps to boost accountability and openness in the company’s management. However, he stressed that the casino still has a long way to go before it can get its full license back. The commissioner made it clear that, unlike in earlier investigations, they found no proof of criminal activity or money laundering this time. Still, he expressed worry about the ongoing issues with following the rules.
Amid Financial Turmoil, Star Entertainment Considers Asset Sales and Job Cuts to Stabilize Operations
Star Entertainment has been dealing with growing financial problems and operational issues over the last year. The company lost a whopping AUD1.69 billion ($1.13 billion) in the 2024 financial year right after losing AUD2.44 billion ($1.63 billion) the year before.
To get its finances under control, Star Entertainment is looking at some tough options. These include getting rid of up to 350 jobs and thinking about selling off some of its assets. On top of that, Star’s stock price has taken a nosedive dropping by more than half in just a year. This shows that investors are worried about whether the company can stay afloat.
On top of its problems in Sydney, Star’s Queensland operations have also caught attention. The Queensland government is now looking over the NICC’s findings to decide if they need to take similar steps for Star’s casinos in Brisbane and the Gold Coast. Both places are running under an approved plan to fix issues, with an independent advisor keeping an eye on them.
While the company is still dealing with this crisis, it has promised to work with regulators in New South Wales and Queensland to fix its problems. Star’s management team, with McCann at the helm, is trying to steady the business and get back in line with what regulators require. The company has said it is hopeful about getting through these tough times even though what lies ahead is unclear.
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