Star Entertainment appoints former Tatts executive and Tyro CEO Robbie Cooke as its new boss

Star Entertainment is betting on Tyro Payments boss Robbie Cooke to lead its turnaround, saying he can ‘restore confidence’ in the troubled casino operator.

Star Entertainment is betting on Tyro Payments boss and former Tatts executive Robbie Cooke to lead its turnaround, saying he can “restore confidence” in the troubled casino operator.

Star appointed Mr Cooke as its new chief executive on Wednesday, replacing Matt Bekier who resigned in March, days into the start of a royal commission-style inquiry into the company’s fitness to hold a NSW casino licence.

Mr Cooke is the first new executive appointed to Star after an exodus of its senior management and board, following explosive revelations that it misled the National Australia Bank and the Bank of China over its illegal use of debit cards and continued to deal with a Chinese junket operator – even when it flouted NSW casino laws by exchanging bundles of cash from backpacks for gambling chips.

Naomi Sharp SC, the counsel assisting the inquiry, has recommended Star be found not suitable to hold a licence. The company’s lawyers argue that the executive clean-out – which included former chairman John O’Neill – proves that it is reforming its operations and should keep its licence.

The company’s interim chairman, Ben Heap, said Mr Cooke’s appointment – subject to regulatory approvals – followed a “comprehensive” global search and was “well placed” to “restore confidence” in Star. “Robbie is a trusted, respected and highly experienced chief executive,” Mr Heap said.

“He has been the CEO of major ASX 200 listed companies and brings extensive commercial experience in operating and driving transformation programs within highly regulated environments, overseeing large workforces and building executive teams in multi-jurisdictional locations.”

Mr Cooke could find himself at Star in a similar position to what he experienced at Wotif and Tatts, and as Crown Resort’s chief executive Steve McCann finds himself in now. Mr McCann completed the sale of Star’s largest rival to private equity firm Blackstone last week.

Mr Cooke led Wotif for seven years before travel booking company Expedia acquired the group for $700m in 2014. He moved to Tatts where he spent three years running its lotteries, wagering and gaming division before Tabcorp acquired the company in 2017.

Last month, The Australian’s DataRoom column reported that some Star shareholders had made approaches to prospective suitors of the $2.58bn listed casino operator, offering up their holdings in what some believe is a sign that the company is a takeover target.

Star has hired Tyro chief executive Robbie Cooke to run its vast gaming operations. Picture: AAP

Australian gaming companies have attracted interest from various overseas parties. But like Mr McCann – who could reap an immediate payout of up to $9m, including $5m in performance rights that vest under Blackstone’s ownership – Star has made it worth Mr Cooke’s time if there is a takeover.

He will be paid $1.6m a year, and another $1.6m as a sign-on incentive via an “additional grant of performance share rights”.

“In the event within the three-year performance period Mr Cooke’s employment is terminated without cause or there is a change of control event that results in a substantial diminution to Mr Cooke’s role, the performance share rights will automatically vest (or cash equivalent paid, as applicable),” the company said in a statement on Wednesday.

His appointment at Star comes as Tyro’s shares have been under pressure, slumping 17.7 per cent to 65c, extending losses in the past year to 82.3 per cent.

In January 2021, North American short-seller Viceroy – a firm better know for its pursuit of now-collapsed payment processor Wirecard – described Tyro as the “most unreliable and technologically inferior fintech” in Australia and accused it of having no disaster recovery plan following the software issue that has plagued its terminals in early 2021.

At the time, Mr Cooke said the “base facts in the Viceroy report are just so wrong”.

“They never contacted the company, they didn’t make any inquiry,” he said. “It was very important to us to get the correct information in front of the people who had read the report, and that’s what we’ve done.”

On Wednesday, Mr Heap praised Mr Cooke’s performance at Tyro, and noted his skill at securing licences from regulators while at Tatts.

“Most recently at the Australian bank and payment fintech, Tyro Payments, he led the company through the post financial services industry royal commission environment with a focus on risk culture, cultural alignment and employee engagement whilst driving strong transaction growth from (about) $13bn to in excess of $30bn over four years,” he said.

“As CEO of the lotteries, wagering and gaming operation at Tatts Group, he led a comprehensive transformation program and secured valuable licence agreements with various state governments.

“Robbie is well placed to lead The Star and restore confidence in the organisation. He is an outstanding choice to guide the Company through its critical ongoing renewal program, a body of work already underway that will deliver a number of near and medium-term initiatives focused on governance, culture, training, systems and technology.”

Mr Cooke said: “I am delighted to have the opportunity to re-join the gaming and hospitality industry, which is a passion of mine and where I have spent the majority of my career”.

“There are challenges for The Star that have been well documented. They will be my priority and focus. Ensuring continuity of the business through a comprehensive renewal program is of paramount importance,” he added. “Major development projects are also underway (and) represent transformational opportunities for the company.”

Star shares closed at $2.71 on the ASX on Tuesday, rising 3.3 per cent, or 90c.