Casino licences for the Treasury Brisbane and the Star Gold Coast will be suspended for 90 days, with this action deferred until December 1, 2023. The deferment gives Star an opportunity to remediate its management and operations. In addition to these issues with their properties in Queensland, in New South Wales, The Star, Sydney has been under government supervision.
"In making its decision, the government reviewed The Star’s progress across priority remediationmeasures, as outlined in the February report prepared by special manager, Mr Nicholas Weeks," the government said. "Mr Weeks also acknowledged the impact of The Star’s recent challenges on its ability to make material headway on some key measures within the set timeframe." After the second inquiry, there was speculation that the NICC could revoke Star Sydney’s licence altogether. The casino was discovered to have failed in its remediation efforts from the first investigation and devolved further into a toxic culture. However, several factors, including the introduction of Star Entertainment CEO Steve McCann last June, led regulators to extend the suspension ultimately through September. Star Sydney has been the subject of two suitability inquiries in the last three years and has been deemed unsuitable both times, most recently in October.
The majority of Star’s employees are based in Sydney, and despite recent troubles, its Pyrmont site remains a major tourism destination, with 650 hotel rooms and 36 food and beverage venues. Any closure would also severely affect neighbouring businesses, including cafes and hairdressers that rely heavily on those drawn to, and staying at, the gaming precinct. More than 8000 jobs hang in the balance as teetering casino operator Star Entertainment is on the brink of financial collapse, with its board in last-ditch talks late on Friday to find the cash needed to keep the company afloat. The trial might last longer than the casino operator, which lost its casino licences and is running out of cash following successive probes into the money laundering and criminal association issues. ASIC has accused them of not paying sufficient attention to the risks of money laundering and criminal association that have unravelled the casino operator.
In February, Star said it had received an $650 million offer from US alternative asset manager Oaktree Capital to refinance its debt. However, the proposal was laced with conditions, including the approval of NSW and Queensland governments and regulators, and a satisfactory settlement with existing lenders. The casino operator, which was due to deliver its latest accounts on Friday, is facing voluntary administration. Pubs and clubs are not subject to the card-only gambling and stricter know-your-customer requirements that are being implemented across Star’s casinos. Under the terms of the deal, Rhode Island-based Bally’s and Star’s largest investor, Bruce Mathieson, would inject fresh funds to keep Star afloat.
There could be profound implications for corporate Australia, pertaining to how much trust directors can place in management assurances that a business is running well. By this time, the high-roller market had dried up in the aftermath of COVID-19 and amid a crackdown by Chinese authorities. But the NSW government announced sweeping new regulations to be imposed on the company, including mandatory carded BlackCoin instant play slots, extensive due diligence on patrons, and $1000 cash limits. Two years earlier, the company had come off second best in a bruising contest with Crown, whose chairman, James Packer, iGaming industry trends had won government approval to operate a competing Casino Mate no deposit free spins 2026 in NSW and was developing a luxury hotel at Barangaroo. But Star had leveraged this to its benefit by securing government funding to develop its own resort-style entertainment complex in Pyrmont.
The NICC said it has also approved the increased shareholding of Bally’s as a "major change" in the state of affairs of the casino operator of The Star Sydney, which is required under the Casino Control Act 1992. US casino operator Bally’s Corp has today been granted probity approval by regulators in the Australian states of New South Wales and Queensland – home to Star Entertainment Group’s casinos – to become a substantial shareholder of Star. Of peninsula hotel and casino L’Arc – one of the satellite casinos currently operating under its license – appears to be a value-accretive purchase with the property promising to generate up to... A comprehensive restructuring of Star was already expected given past comments by Bally’s Chairman Soo Kim around the need to install a new executive team. Kim also told Inside Asian Gaming in a video interview that he was desperate to inspect Star’s financials given the sizeable losses the company has endured since a review of Star’s suitability in 2022 saw the company’s casino license suspended. Combined the two companies will own more than half of the embattled Blackcoin casino loyalty rewards operator.
Apart from the higher regulatory costs following a run of scandals, Star’s fortunes have also been hurt by poor gaming turnover at its casinos and the move to cashless gaming in NSW, with Queensland to follow. A second inquiry last year uncovered several additional license breaches, including falsifying records. The casino has been overseen by a government-appointed manager since the 2022 report. More than 8000 jobs are on the line, with the company running out of time and money to keep its casinos open. Star Entertainment was suspended from trading by the ASX this morning over its failure to lodge financial statements for the December half-year and may not trade again if its lenders fail to agree to a deal that gives the casino operator fresh funding. Star’s chief executive, Steve McCann, said this week that while online poker high limit sites machine revenue was continuing to rise across NSW and Queensland, the Lucky Elf casino holiday promotions operator was not benefiting from it because of tighter regulations.
