Minns rules out rescue package for workers at struggling Star casino
Shares in Star Entertainment were suspended from trading on the stock exchange after it failed to publish its half-yearly results on time and released a statement saying there was “material uncertainty as to the group’s ability to continue as a going concern”.
NSW
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NSW Premier Chris Minns has ruled out a rescue package for 3600 employees at The Star if the troubled casino is put into administration.
Shares in Star Entertainment were suspended from trading on the stock exchange yesterday after it failed to publish its half-yearly results on time and released a statement saying there was “material uncertainty as to the group’s ability to continue as a going concern”.
Mr Minns said tax concessions and job guarantees already in place would remain if a new owner took over control of the casino, but there were “limits” to what could be done if it plunges into administration.
“I’ve got an enormous pull on NSW taxpayer dollars, whether it’s transport infrastructure, whether it’s emergency departments, whether it’s brand new schools and I can’t plunge taxpayer money into casinos,” Mr Minns said.
“There’s limits to what we can pay.
“I am concerned about people that (whose) professional lives are at the casino. We’re going to do what we can for them, but I just don’t want to offer some kind of guarantee that’s not available.”
Star chief executive Steve McCann spent the weekend in talks with a potential investor but failed to secure a deal before the start of trading yesterday.
One potential investor wanted rights over the waterfront property where The Star stands at Pyrmont. However, the land is owned by the NSW Government which has privately made clear it will not secede control of the land to allow it to form part of any rescue package.
The company’s existing investors, who are already owed $430m, have refused to cough up more cash despite warnings there is only enough in the coffers to last another week.
Australian Workers Union casino director Andrew Jones said there were concerns for the jobs of 9000 employees working for the casino company in Sydney, Brisbane and the Gold Coast.
“I think we are heading towards administration sooner rather than later,” Mr Jones said. “Possibly within the next few days.”
The Star’s woes began when a NSW Government inquiry found it had ignored anti-money laundering and counter terrorism risks in 2021. The NSW casino regulator followed that with a second probe that found the previous management was “dysfunctional” and that it was unsuitable to hold a casino licence.
Mr Jones said The Star in Sydney was battling to keep operating with the reduction of a $5000 cash limit to just $1000 in coming months certain “to have an even deeper impact”.
He said the 3600 workers in Sydney were “specialist casino workers trained in jobs such as surveillance and table games” and those people would not be able to find work elsewhere.
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