The 90-day closure of Star’s Treasury Brisbane and The Star Gold Coast casinos has been avoided – for now. 31 May 2024 is the new date set for the suspension. Last year’s penalties also required the two casinos to have a Special Manager appointed. The Special Manager’s term has been extended by a year, to further oversee the casino’s reform.
The Hundred Million Dollar Reform Plan
In December of 2022, in response to the many charges against them, Star Group was required to submit a Reform Plan to the Queensland State Government. The charges included money laundering and mismanagement of high rollers, amongst others. That Reform Plan has now been approved by QLD’s Attorney General.
A hefty pecuniary fine of AU$100 million accompanied the suspension threat along with the appointment of a Special Manager. The CEO of Star Entertainment Group and the entire company’s board was also replaced.
The remediation plan has over a hundred initiatives associated with it. The Special Manager, Nicholas Weeks, their assistant and team, are monitoring the implementation of the plan at both Queensland casinos. Over AU$200 million has been set aside by Star Group for it.
The board has stated that they anticipate the approved Remediation Plan to take many years. This is intentional as Cultural Change was a requirement from the government. Culture takes years to change. The plan has approximately 640 milestones that it will hit over this time. The changes will cover all facets of the casinos’ operations.
Both of Star’s Queensland casinos were originally state government entities, run by TAB Queensland. They were opened in 1962. The company was listed on the Australian Stock Exchange in 1999. In 2011, Star Entertainment Group acquired both casinos (then named Echo Entertainment Group). Star Gold Coast has over 1,400 electronic gaming machines and Treasury Brisbane over 1,300.
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Cleaning Up Their Act
Since then, the Star has self-reported – and been charged for – further wrong doings: advertising to excluded patrons, and letting players buy chips with a credit card onsite. Because Star self-reported, the penalties were low. The wrong-doings were discovered internally, as part of Star’s reform activities. You can read more about that here.
With the extra six months, the deadline being 31st May, 2024, Star believes they can demonstrate to the Queensland government that they are serious about mending their ways. The Special Manager and their team will be staying on at the casino for an extra year, until 8 December 2024.
Robbie Cooke, the Managing Director and CEO of Star, said, “We’re pleased to have our Remediation Plan approved in Queensland… we are fully aware that successful implementation of the Remediation Plan will require the utmost rigour and discipline.”
“Holding casino licences is a privilege, not a right.”
The Attorney-General and Minister for Justice and Minister for the Prevention of Domestic and Family Violence, Yvette D’Ath stated, “The Star’s remediation and return to suitability to hold a casino licence will not be simple or quick and requires cultural change across the organisation.
Today’s announcement strikes the right balance between making sure The Star operates lawfully, ethically and in a way that enhances integrity, while also prioritising public confidence and local jobs.
The government remains committed to casino reform to address the significant failings identified in the Gotterson Review and the findings of the many inquiries into casino operations across the country.”
The government remains committed to casino reform to address the significant failings identified in the Gotterson Review and the findings of the many inquiries into casino operations across the country.”
The Gotterson Review is the report written about the external review of Star’s Queensland operations published in September 2022.
Since the problems began to be reported in 2019, the Group’s share price has continued to fall. Shares are now at their lowest ever, at AU$0.54 in January 2024.
