NSW regulator extends suspension of Star’s Sydney casino licence

Star Entertainment has been dealt another blow, with the NSW gaming regulator extending the suspension of the group’s Sydney casino licence.

In a letter from the NSW Independent Casino Commission published on the ASX on Wednesday, chief commissioner Philip Crawford said the NICC had sought submissions from The Star and special manager Nicholas Weeks concerning its suitability to hold a casino licence.

“Having regard to the submissions . . . the NICC has determined that The Star’s licence suspension should remain in effect,” Mr Crawford said.

The NICC is seeking approval to extend the term of Mr Weeks, who was due to finish his tenure as special manager on September 30, until March 31 next year. It is understood the latest renewal will mark the fourth time his term has been extended.

Mr Weeks was appointed to the role by the NICC in October 2022 when The Star was fined $100 million and stripped of its casino licence. The decision followed an independent commission finding it had failed to prevent money laundering and other criminal activities at its Sydney operation.

Star chief executive Steve McCann acknowledged there was “more work to do” but said the group was committed to delivering on its remediation plan “to support the safe and compliant operation of our business”.

“The Star is committed to continuing its transparent and constructive relationship with the manager, the NICC and the New South Wales Government, and demonstrating to all its stakeholders its suitability as a licence holder as soon as possible,” he added.

The embattled casino group is running out of cash and confronting a severe downturn in revenues as an exodus of high rollers and cost-of-living pressures hit the business.

It is also battling a tangled swirl of corporate watchdog investigations and penalties for serious failures at its operations.

Star reported last month it had lost $471.5m for the 12 months until June 30 on the back of plummeting revenue, which fell 29 per cent to $1.18 billion.

The company cited regulatory reforms, ongoing remediation costs, loss of market share and the closure of the Treasury Brisbane Casino as factors behind its falling revenue.

“There remains material uncertainly regarding the group’s ability to continue as a going concern,” Star said in its results, citing six items that are critical to its financial outlook.

Among them is a looming money laundering penalty from Austrac, Australia’s financial watchdog, which has proposed a fine of $400m; Star’s ability to restore its casino licenses; and completing a $300m investment from US casino giant Bally’s Corporation and pub baron Bruce Mathieson.

Star is scrambling to stay afloat and in August signed a deal to offload its 50 per cent stake in the massive Queen’s Wharf precinct to its Hong Kong-based partners Chow Tai Fook Enterprises and Far East Consortium. The sale rids the business of a substantial $1.4b debt obligation.

Star plans to exit Brisbane and focus its operations on the Gold Coast and Sydney.

Star shares were down 2.1 per cent at 1.40pm AEST, trading at 9.3¢.