Star Entertainment Extends Special Managers' Terms Amid Ongoing Remediation

In a recent development, Star Entertainment disclosed the extension of Nicholas Weeks' term as Manager of The Star Sydney and special managers for The Star Gold Coast and Treasury Brisbane casinos. The move aims to showcase progress in remedial actions to regain regulatory compliance in both NSW and Queensland. The extended terms emphasize the operator's commitment to ongoing remediation plans, seeking suitability by summer 2024.

ASX filings reveal Nicholas Weeks' term extension for The Star Sydney until June 30, 2024. Similarly, the Special Manager positions for The Star Gold Coast and Treasury Brisbane casinos in Queensland have been extended to December 8, 2024. The goal is to convince authorities that Star is ready to resume gaming activities, subject to meeting casino license provisions.

Queensland's extension aligns with Attorney General Yvette D'Ath's decision to shift the 90-day casino license suspension's effective date from December 1, 2023, to May 31, 2024. The NSW Independent Casino Commission clarifies that the extension may conclude the Manager's term, providing flexibility based on regulatory considerations.

Star Entertainment CEO Robbie Cooke acknowledges satisfaction with Queensland's Remediation Plan approval. He emphasizes the need for commitment, accountability, and diligence to prove the company's capability to operate without additional supervision. Despite progress, financial challenges persist, with recent duty rate increases contributing to a full-year loss of $1.6 million in FY 2022/23.

While the operator works towards compliance, industry experts remain skeptical about its ability to restore influence and reputation. Even if regulatory trust is regained, Star Entertainment confronts mounting losses and macroeconomic pressures, suggesting a return to profitability may be a prolonged journey.