QLD Government extends the Star’s demonstration that its plans to fix QLD casino to May 31, 2024
Star Entertainment has won a crucial reprieve ahead of its peak trading period, with the Queensland government extending the casino operator’s window to fix its operations.
The Star Entertainment has won a crucial reprieve ahead of its peak trading period, with the Queensland government extending by almost six months the date the casino operator must show that it’s delivering on a plan to fix its Brisbane and Gold Coast operations.
The extension follows the state government issuing a $100m fine to The Star last December, following a damning inquiry by Robert Gotterson.
The inquiry found The Star disguised millions of Chinese gambling transactions as hotel charges, allowed gamblers banned in NSW to come to its Queensland casinos, and it “lied” to state regulators – flouting anti-money laundering and counter-terrorism financing laws.
It gave The Star until the end of 2023 to prove it was a suitable casino licence holder or face a 90-day suspension.
However, on Friday The Star said the Queensland government’s acceptance of its Remediation Plan and return to suitability had led to the 90-day suspension threat hanging over it's The Star Gold Coast and Treasury Brisbane casinos being deferred.
The casinos are now overseen by special manager Nicholas Weeks, and the demonstration of its suitability has been deferred from December 1 this year to May 31, 2024.
Mr Week’s term has been also been extended to December 8, 2024.
Accordingly, The Star will be required, prior to May 31, 2024 when the deferred suspensions would otherwise take effect, to demonstrate to the Queensland Government, that it is delivering upon the approved Remediation Plan and returning to suitability.
The Star’s Remediation Plan includes about 640 milestones across 15 workstreams to be implemented over a multi-year period.
The Star’s Group chief executive Robbie Cooke the approval of the Remediation Plan was an
important step on its path to returning to suitability in Queensland.
“(It) will track and hold us accountable throughout the multi-year program we are committed to delivering,” he said.
“At the same time, we are fully aware that successful implementation of the Remediation Plan will require the utmost rigour and discipline.
“We need to regain the trust and confidence of all our stakeholders and communities and continue to have an unwavering focus on transformation. That comes from a clear understanding that holding casino licences is a privilege, not a right.”
The Star is continuing to engage with the NSW independent Casino Commission (NICC)) in relation to its Sydney operations and will make a separate announcement in relation to the position in NSW.
Also the NICC has requested the term of the appointment of Mr Weeks as manager of Sydney Casino to be extended to June 30, 2024.
The NICC advised The Star that it intends it to be the final extension of the manager’s term.
It said the proposed extension would give The Star additional time to satisfy that it is capable of undertaking the remedial action required for it to become suitable and be permitted to return to gaming in accordance with the provisions of the Sydney casino licence.
The Star said it was is continuing to engage with the NICC and Mr Weeks to its Sydney Casino Remediation Plan which is yet to be approved in NSW.
The Star’s shares closed flat at 50c.
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