Star gets some breathing space to demonstrate it’s on road to redemption
The State Government has given Star more time to prove it was on the right path to reform after the damning outcome from two inquiries into its casino operations.
Star CEO Robbie Cooke. (AAP Image/Dan Peled)
Attorney General Yvette D’Ath has approved Star’s remediation plan which has 640 milestones across 15 workstreams but has also shifted the period of its three-month licence suspension to now start on May 31.
The term of the special manager which oversees the operations of the casinos on the Gold Coast and in Brisbane has been extended by 12 months to December next year.
That means that by May 31, 2024, Star would have to demonstrate that it was delivering on its remediation plan “and returning to suitability”.
D’Ath said having an approved plan in place was critical to Star avoiding licence suspensions and the assessment of progress would inform future decisions applying to suspensions.
Star faces fines of up to $5 million if it fails to comply with the remediation plan.
She said returning to suitability would not be simple or quick for Star.
“Today’s announcement strikes the right balance between making sure The Star operates lawfully, ethically and in a way that enhances integrity while also prioritising public confidence and local jobs,” D’Ath said.
Star was found to be not fit to hold a casino licence after the Gotterson inquiry revealed big gaps in its governance relating to money laundering and allowing people who had been banned from casinos interstate to freely gamble in Queensland.
Since the inquiry findings, Star’s share price has plunged to a low of 50 cents, but they jumped 3 per cent this morning on the news then dropped back to 50 cents.
Star managing director Robbie Cooke said the company was pleased that its remediation plan had been accepted.
“It’s an important step on our path to returning to suitability in Queensland and will track and hold us accountable through the multi-year program we are committed to delivering,” he said.
“At the same time were 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.
“This comes from a clear understanding that holding casino licences is a privilege, not a right.”
Star is still in negotiations with the NSW Independent Casino Commission in relation to operations at the Sydney casino.
