Star Entertainment Group CEO Robbie Cooke talks frankly at Gold Coast business breakfast

Star CEO Robbie Cooke has given his most candid interview since taking on the role, admitting the firm was “friendless” after damning casino inquiries. Read how its tackling challenges ahead.

STAR Entertainment Group’s CEO Robbie Cooke admits the company ended up “friendless” after damning inquiries into their NSW and Queensland operations – but vows to fix the challenges.

Mr Cooke, parachuted into the top job as Star CEO and managing director back in October with a remit to oversee cultural change, spoke candidly about Star’s “issues rich” challenges ahead at a Gold Coast Central Chamber of Commerce breakfast event on Wednesday.

In the seven months he has been in the job, the business has been declared “unsuitable” to hold casino licences in Queensland and NSW and has a year to shape up, fined $100 million in both states, is facing higher gaming taxes in NSW and making 500 staff nationally redundant.

It also faces four class actions and an Austrac prosecution.

Star Entertainment Group CEO Robbie Cooke.

“We are issues rich, there are a lot of challenges,” he told those gathered at Isoletto at the Star Gold Coast Broadbeach island property.

“(But) they are all things we can resolve.

“But it does require support and that’s the lesson out of this. When your social licence gets damaged – which ours definitely did – you become friendless and it becomes very easy for regulators, politicians, the community, to say you are bad actors, you deserve what you are getting and here’s some more. We’ve definitely gone through that as a business and it’s been hard.”

Mr Cooke said the former NSW Liberal government had “out of the blue” back in December ratcheted up taxes on gaming with zero consultation.

Robbie Cooke. Photo: AAP/ Ric Frearson

“They didn’t tell us - we found out from a few journos ringing us asking what do you think of this new tax rate, so no consultation and we find out our tax rate is going to double.

“The business has a lot of inbound challenges and Treasury just decides you can hit the business with another ongoing tax,” he said, adding it coincided with a substantial Star share price drop.

“That put the business in a stress position and had a whole series of knock on consequences as you can imagine.

“The problem with our business is people see it as just generating cash but like any business it has limits - if you keep piling things on.”

Asked what could be done to impact the company share price, Mr Cooke said resolving the tax issue in NSW would be key.

He was also asked about the company’s responsibility towards guarding against harmful gambling and setting limits, saying while only recently joining Star he had worked in gambling company environment as far back as 1999.

“I’ve seen the harm that can be caused by our products - there are risks wth any gambling product (whether) sports betting, race wagering, lotteries, casinos, slot machines. All have risk profile against them.

The Star Gold Coast site's new $500m fourth tower planned (far left) at its Broadbeach gaming resort. It is underconstruction.

“To run the businesses we run you have to do it with a mind to try to prevent harm happening as part of the responsibility that comes with operating in our space.”

At the time of his appointment, Mr Cooke said profits would come second to ensuring Star was “operating at the highest level of integrity”.

“Rather than profit, you’ve got to look at shareholder value, protecting the business with the utmost level of compliance,” he said.

“The reviews called out the practice of putting profit above compliance, and that has hurt shareholders.”

[e-mail]