The Star waiting for NSW response before ruling out return of VIP junkets: Chair John O’Neill
The chairman of The Star Entertainment Group says it is “out of the junket business” as casino regulators digest a blistering report into corruption and organised crime at Crown Resorts casinos.
Business
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The chairman of The Star Entertainment Group says it is “out of the junket business until further notice” as casino regulators digest a blistering report into corruption and organised crime at Crown Resorts casinos.
While acknowledging there would be “obvious ramifications” for the industry, John O’Neill stopped short of saying Star’s partnership with disgraced VIP high-roller operator Suncity was permanently over or simply on COVID-induced hiatus.
A report by former NSW Supreme Court judge Patricia Bergin SC found Crown not suitable for a gaming licence for its Barangaroo development on Sydney Harbour.
It also recommended a new independent Casino Control Commission with the powers of a standing royal commission, a prohibition on dealing with junket operators, and stricter requirements for reporting suspicious transactions to money-laundering regulator Austrac.
Speaking on the Gold Coast on Friday, Mr O’Neill said The Star would “wait and see” what the NSW regulator did with the Bergin report before ruling out future partnerships with Suncity or other junket operators.
“The VIP business out of China, even pre-COVID, was coming off in any case, so there’s no financial impact on us,” he said.
New VIP gaming areas were included in The Star’s Gold Coast expansions of The Star Grand and the Darling.
Mr O’Neill said he was in regular talks with NSW Independent Liquor and Gaming Authority chairman Philip Crawford.
“That dialogue will continue as ILGA absorbs the Bergin inquiry recommendations,” he said.
But he added: “The inquiry was about Crown, the inquiry wasn’t about us.
“There will be, obviously, some ramifications for the industry, so in that context, we’ll be talking to Philip Crawford about what is intended and what ILGA’s going to accept and the time frame in which they’re going to execute those recommendations.”
The Star’s executive team was on the Gold Coast on Friday to announce the start of construction of a $400m, 63-storey tower, which is to house the city’s first W Hotel.
Asked what consideration, if any, Star had given to buying into James Packer’s Crown holdings, Star chief executive Matt Bekier declined to answer.
“This announcement today is about this tower and, I’m sure you understand, we can’t really comment on anything corporate at this point,” Mr Bekier said.
Among the Bergin report’s recommendations was a move to remove responsibility for gaming regulation from states and territories and bring in a national watchdog.
But Queensland Premier Annastacia Palaszczuk said the report was irrelevant to casino operations in Queensland.
“That’s a NSW issue,” Ms Palaszczuk said.
“I don’t know how it would have any impact on Queensland.”
Star is scheduled to hand down its first-half earnings results on Thursday.
Shares in Star Entertainment on Friday closed down 1.4 per cent at $3.66.
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