The postponement of the suspension of the Star Entertainment casino permit in Queensland has been pushed back once more.
Star Entertainment has been granted additional time to demonstrate its fitness to operate land-based casinos in the state after Australia’s Queensland announced another postponement of the planned license suspension.
Star Entertainment was penalized in Queensland in December 2022 for a series of shortcomings. The operator was fined A$100 million (£52.6 million/€61.4 million/$66.7 million) and informed that its permit would be suspended.
This followed an investigation into the company’s operations in Queensland’s Treasury on the Gold Coast and in Brisbane. The inquiry determined that Star Entertainment was deemed “unsuitable” to hold a permit in Queensland.
Initially, Star Entertainment was given 12 months to address the issues raised by the inquiry and prove its suitability for a license. The December 1, 2023 deadline was moved to May 31 this year after Star Entertainment submitted a draft remediation plan to address the issues. This included commitments to around 640 milestones across 15 workstreams, which will be implemented over several years.
However, just two weeks before the rescheduled deadline, it has been extended again. The potential license suspension will now not come into effect until December 20 this year. The extension was approved by Queensland Attorney-General Yvette DAth.
The choice to postpone the final date for a second time was made following the commencement of the “Second Bell Inquiry” in February. This investigation centered on Star Entertainment’s operations in New South Wales (NSW), and officials in Queensland desired to review the findings before making a determination regarding Star Entertainment.
The timeframe for the appointment of a special administrator for Star Entertainment’s Gold Coast and Treasury Brisbane gambling establishments remains unchanged, concluding on December 8th of this year.
Star Entertainment’s blunders in Queensland echo those discovered in the report concerning Star Entertainment in NSW. In both instances, Star Entertainment was deemed unfit to retain a license.
Central concerns encompass Star Entertainment deceiving financial institutions and regulatory bodies by providing inaccurate information about the intent of China UnionPay transactions, thereby breaching Chinese capital flight regulations.
Star Entertainment also sought out individuals connected to criminal organizations and encouraged them to participate in gambling, contrary to the counsel of the Police Commissioner.
Investigators also uncovered shortcomings in social responsibility, deficiencies in anti-money laundering and counter-terrorism financing practices, and apprehensions about Star Entertainment’s interactions with intermediary operators.
The outcomes of the Second Bell Inquiry in New South Wales will be presented at the end of May.
The evaluators are examining the effects of the Bell Report. A year after the publication of the report, a report on the advancement of The Star Sydney shows that the gambling establishment has put into practice 22 out of the 30 recommendations outlined in the Bell Report.
Moreover, the researchers are particularly curious about The Star Sydney’s environment, including its risk management environment and its administration and reporting systems. Additionally, the inquiry will investigate whether The Star Sydney has secured the necessary financial resources to support its gambling operations.
Philip Crawford, the head of the New South Wales Independent Casino Commission, stated that the second report will provide the essential information to make crucial choices for The Star Sydney, its workers, its investors, and the broader community.
The Star Sydney is facing a difficult period. Against this backdrop of uncertainty, The Star Sydney has experienced a series of departures from senior personnel.
In the middle of March, Robbie Cooke announced his resignation as Group CEO and Managing Director. Christina Cassimatis will also step down as Chief Financial Officer. Both departures came just a few weeks after The Star Sydney stated that the leadership changes were in its best interests.
The departures continued in April when Jessica Mellor resigned as CEO of The Star Gold Coast. Weeks later, David Foster resigned as Executive Chairman and Anne Ward was appointed as his direct successor. Foster had assumed additional responsibilities after Cooke’s departure as CEO.
The company, in its decision to step down, also unveiled its financial performance for the third quarter. The report showed a net deficit of $6.8 million. This, however, represents a positive change from the $49.7 million shortfall seen in the same period a year ago.
Other key figures for the third quarter include a 4.6% drop in earnings to €419.2 million, while adjusted EBITDA decreased by 11.5% to $37.9 million.
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