Star’s licence in New South Wales was suspended in 2022, with Nicholas Weeks appointed as a special manager. Weeks was later given a similar role in Queensland, where a second inquiry began fresh public hearings. Concerns about the falsification of welfare checks on customers using poker machines for more than three hours in Sydney led to probes in Queensland. The Queensland government will decide whether to defer a 90-day suspension of Star’s licences in Brisbane and the Gold Coast, based on Week’s recommendation by May 31.
The remediation plan for Star includes 110 initiatives across 15 different areas of the business, with a budget of $214.5 million over four years. The plan, outlined in a redacted synopsis, is organized into three “horizons” based on required timeframes. The first horizon, “rebuild”, is focused on laying the foundations for reform and includes deliverables for the postponed opening of The Star Brisbane in April 2024. Governance arrangements and efforts to engage the company’s staff are also outlined, with most additional details redacted in the 37-page synopsis.
The fallout from the allegations against Star has had a significant impact on the company, its board, former executives, and share price since 2021. The company has faced heavy fines from state-based inquiries and set aside $150 million for a potential penalty from AUSTRAC. Job losses occurred in 2023 due to low casino earnings, which have continued into 2024.
Overall, the suspension of Star’s licences in NSW and ongoing inquiries in both NSW and Queensland have raised concerns about the company’s operations and compliance with regulations. The remediation plan aims to address these issues and rebuild the foundations of the business. The financial impact of fines and potential penalties has affected the company’s bottom line, leading to job losses and continued challenges in the casino industry. The decision on the future of Star’s licences in Queensland will be based on Week’s recommendation and will have implications for the company’s operations moving forward.
