Star boss resigns creating a fresh crisis for the troubled casino operator

Star Entertainment has lost CEO Robbie Cooke and two other execs as the troubled casino group deals with a NSW regulatory probe and races to finish its Queen’s Wharf project.

Star Entertainment Group’s chief executive, Robbie Cooke, has resigned. Picture: David Clark

Troubled casino group The Star Entertainment Group has lurched to a fresh crisis with the sudden departure of chief executive Robbie Cooke.

Mr Cooke said his decision to resign came after he formed a view his continuation in the role could threaten the company’s chances of winning back its casino licence in NSW.

The NSW independent Casino Commission (NICC) last month announced a second inquiry into Star’s suitability to operate its Sydney casino following concerns it was not moving quickly enough to reform its business.

A statement from Brisbane-based Star said Mr Cooke and the board considered “a change in leadership to be in the best interests of the company at this time” The continuation of Mr Cooke’s leadership of the group was not going to be conducive to the “NICC determining to find The Star capable of becoming suitable to hold a casino licence in NSW.”

Star is under regulatory pressure to fix its Queensland casinos ahead of the August opening of its multi-billion dollar Queen’s Wharf resort.

Star chairman David Foster, who also is chair of Bendigo and Adelaide Bank, will take on additional duties as executive chair while a search for a permanent chief executive is conducted. In an email to staff, Mr Cooke said that it was with “considerable reluctance and a heavy heart” that he announced his departure.

Christina Katsibouba has also resigned as CFO.

He said it was his understanding that the NICC’s chief commissioner had issues “with my decision to retain a number of existing executives on my senior leadership team”.

“These individuals were not on The Star’s executive committee at the time the offending conduct identified in the original Bell inquiry occurred, and I am not aware of any basis to suggest they were bad actors,” Mr Cooke said.

“Secondly, it also seems that the chief commissioner did not consider I was moving with sufficient speed with the reforms and changes being implemented at The Star – a view with which I respectfully and fundamentally disagree.”

Mr Cooke will leave the business along with two other senior executives: chief financial officer Christina Katsibouba and chief of staff Peter Jenkins.

Ms Katsibouba had only been appointed to the chief financial officer role in January but had been with Star for nine years in other roles. Ms Katsibouba will be succeeded by former Corporate Travel Management executive Neale O’Connell on an interim basis.

Mr Jenkins said it “was mutually agreed with the board that this was in The Star’s best interests (he left). I’m proud to have given The Star almost 10 years’ unbroken service”.

Queensland attorney-general Yvette D’Ath said the state government was “closely” monitoring developments at the executive management team at Star as it assessed the troubled gaming group’s operations.

“Irrespective of who holds what positions, this won’t change the Miles government’s strong stance on holding the casino to account as we monitor its progress towards remediation,” she said. “We’ve passed some of the most significant reforms in Queensland’s history to ensure that our regulator has the tools available to monitor casinos and enforce compliance in line with the Gotterson Review recommendations.”

An external manager has been running the Sydney casino since October 2022 when an independent inquiry concluded that the gaming giant – with a string of casinos and a market value of more than $2.6bn – had set up an “inherently deceptive and unethical process”.

It said the casino had disguised more than $900m as hotel expenses to allow wealthy gamblers to bet at the ­venues and failed to check the source of the money while knowing for years it was in breach of the rules.

The new crisis for Star comes only six months before the opening of its flagship Queen’s Wharf project in Brisbane. The $3.8bn Queen’s Wharf project, which takes up 10 per cent of Brisbane’s CBD, has had a rocky road to completion with lengthy construction delays, legal battles and a bruising casino inquiry.

The Queensland government last year extended by almost six months the date it must show that it’s delivering on a plan to fix its Brisbane and Gold Coast operations.

Mr Cooke, who was appointed CEO in October 2022, said he was attracted by the opportunity to work with a dedicated team to rebuild the business and its reputation.

“This is something I have been completely committed to in my 16 months with the business and those who have worked with me know I have put every ounce of my being into that task,” he told staff in an email on Friday.

“I can also confidently say that the entire team at The Star have been tirelessly committed and absolutely focused on seeing The Star return to suitability.

“This commitment is so important given the significance of our business for the New South Wales and Queensland economies. We are a major employer, a significant contributor to the night-time and tourism economies, and generate considerable state government revenues.”

Mr Cooke said it was rare that a business faced as many issues simultaneously, including four shareholder class actions, Austrac proceedings and ASIC commencing civil penalty proceedings against a number of former directors and past executives.

Star had to retrench almost 500 employees, following the rapid deterioration in its operating environment, as part of a $100m cost cutting program.

Mr Foster said Mr Cooke had worked tirelessly since he joined in October 2022, focusing on stabilising the operations, resolving a number of existential threats to the business and addressing separate remediation demands from regulators.

He said he had also rebuilt the management team and systems – including the addition of more senior risk, compliance and financial crime executives, and the commencement of the company’s culture transformation.

“Robbie shared in a resolve to put safe, responsible and ethical gaming at the core of what we do,” he said.

Mr Foster said Star was committed to being judged suitable to hold a casino licence in New South Wales and Queensland.

Additional reporting by James Hall.