The NSW casino regulator has extended the term of The Star’s special manager until next March, ahead of its long-awaited decision on whether the company’s flagship Pyrmont casino will be shut down.
The NSW Independent Casino Commission (NICC) received approval from Gaming Minister David Harris to extend Nicholas Weeks’ term for a fourth time since he was first appointed to oversee the struggling casino business in October 2022.
Credit: Dion Georgopoulos
The decision to extend Weeks’ appointment means it is likely Star Sydney will not be shut down following the second inquiry into its operations, helmed by Adam Bell, SC, earlier this year.
“Weeks’ appointment was due to expire 30 September 2024 and has been extended until 31 March 2025, unless terminated earlier by the NICC,” the regulator said on Thursday.
The Star confirmed the extension to the ASX late on Thursday, one day after the casino commission received Bell’s final report into Star Sydney. Weeks is paid $75,000 a month for his role overseeing the Sydney business and was initially appointed for 90 days.
Former Star chief executive Robbie Cooke, former chief financial officer Christina Katsibouba and at least eight other senior executives left the business this year, with the NSW regulator unsure if the company was committed to a culture overhaul since it was first disgraced for extensive anti-money laundering and counterterrorism failings in 2021.
The company argued it was not yet ready to operate independently but should be given conditional approval to keep its Sydney doors open.
Cooke and former chairman David Foster were singled out over three weeks of hearings into the group in April as being uncooperative with the NSW regulator and Weeks.
The Star appointed ex-Crown chief Steve McCann to take over as chief executive late in June after months of negotiations. McCann led Crown through its Blackstone takeover and is one of the few casino executives who emerged unscathed after holding a senior leadership position at either casino over the past four years.
In addition to finding a viable way forward for the business, McCann is overseeing a transition to cashless gaming.
The Star told the ASX in June that trading across its three casinos had continued to fall due to a lack of high rollers and amended its forecast for this financial year. Its earnings have also been hampered by increased costs associated with its regulatory compliance.
The Star now expects to generate up to $1.68 billion in total revenue across its two casinos in Queensland and its casino in NSW this financial year. This is a fall from $1.8 billion in 2023, which was originally thought to be the low point for the business.
It is still awaiting a multimillion-dollar penalty from the financial crimes watchdog, AUSTRAC (Australian Transaction Reports and Analysis Centre), for its anti-money laundering breaches exposed in 2021.
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