Last chance saloon
The Star Entertainment Group has secured the lifeline of another six months to get its house in order to avoid a casino license suspension.
the Queensland government has given Star until May 31
The Australian casino operator initially had a 12-month deadline; however, this was due to expire next Friday. The Queensland government has now given Star until May 31 to demonstrate that its Brisbane and Gold Coast casinos are fit for operations.
If Star fails to meet this remit, its gaming licenses may face suspension for 90 days.
Last December, the Queensland government fined Star AU$100m (US$65.6m) after it found the operator unfit to hold its casino licenses. The ruling followed a report, filed by former Appeal Court President Robert Gotterson, into alleged criminal activity.
Remediation plan in place
The Gotterson report found that Star had misled regulators and targeted gamblers excluded from interstate casinos. In order to get the company back on track, Queensland Attorney-General Yvette D’Ath has approved Star’s 640-point remediation plan.
evidence that they are changing from the top down”
Failure to comply with the plan would make Star liable for further disciplinary action, including fines of up to AU$5m(US$3.28m), according to D’Ath. While she said it’s still early days, there is “evidence that they are changing from the top down.”
The appointment of Special Manager Nicholas Weeks has also been extended for another 12 months by the Queensland government. He is expected to remain in his role until December 8, 2024.
Star Chief Executive and Managing Director Robbie Cooke said he is happy the plan earned approval, deeming it an “important step on our path to returning to suitability in Queensland.”
A tough year
It has proven a difficult year for Star.
In March, it earned another fine after pleading guilty to fresh allegations just five months after its AU$100m penalty. The guilty plea came after an investigation uncovered violations in compliance standards at Star’s two Queensland casinos: Brisbane’s Treasury Casino and the Star Gold Coast. The casinos confessed to seven charges linked to paying for gambling chips with a credit card.
Following on from that, in April, Star announced it had to let go of 500 employees and freeze salaries following a drop in revenue at its Australian casinos.