Star’s licence in NSW was suspended in 2022, leading to the appointment of Nicholas Weeks as a special manager in both NSW and Queensland. Concerns about reform progress have fueled a second NSW inquiry, with fresh public hearings being held. Weeks revealed that concerns about falsified welfare checks on customers using poker machines for more than three hours in Sydney had sparked investigations in Queensland. The Queensland government will decide on the fate of Star’s Brisbane and Gold Coast licences based on Weeks’ recommendation by May 31.
The remediation plan for Star includes 110 initiatives across 15 areas of its business, with a budget of $214.5 million over four years. The plan, dated October 5 last year, is organized into three “horizons” based on required timeframes, with the first focusing on laying the foundation for reform. The plan also addresses the planned opening of The Star Brisbane in April 2024, although this has been delayed. Governance arrangements and staff engagement efforts are outlined in the plan, but much of the detail is redacted.
The fall of Star following allegations reported by the media and 60 Minutes has had a significant impact on its board, former executives, and share price since 2021. The company has faced substantial fines from state-based inquiries and set aside $150 million for a potential penalty from AUSTRAC. Due to low casino earnings, hundreds of jobs were cut last year, and the financial difficulties have continued into 2024. The company’s reputation and financial stability have been severely affected by the ongoing issues.
The suspension of Star’s licences in NSW and Queensland, as well as the ongoing inquiries and investigations, highlight the serious nature of the allegations against the company. The appointment of Nicholas Weeks as a special manager demonstrates the regulators’ commitment to addressing concerns about Star’s operations. The remediation plan outlines a comprehensive approach to reforming the company’s business practices and ensuring compliance with regulations. The decision on the fate of Star’s licences in Queensland will have significant ramifications for the company and its future operations.
It is crucial for the Queensland government to carefully consider Weeks’ recommendation regarding the suspension or withdrawal of Star’s licences in Brisbane and the Gold Coast. The implementation of the remediation plan and the company’s ability to address the issues raised by the inquiries will be key factors in determining the outcome. The impact of the ongoing investigations and regulatory actions on Star’s financial performance and reputation underscores the importance of compliance with gaming regulations and responsible gambling practices in the industry.
In conclusion, the developments surrounding Star’s licence suspension, the appointment of a special manager, and the ongoing inquiries and investigations highlight the challenges facing the company. The remediation plan and efforts to reform the business are critical to restoring trust and compliance with gaming regulations. The decisions made by the Queensland government regarding the company’s licences will shape its future path. It is essential for Star to address the issues raised by the inquiries and demonstrate a commitment to responsible gambling practices to rebuild its reputation and financial stability.
