Star Entertainment is on the verge of losing a lucrative licence to operate one of two Sydney casinos after the NSW regulator launched an independent inquiry into whether the company had fixed major cultural failures.
Brokers at MST Marquee estimate Star’s Sydney casino could be worth about $1.3 billion but debt worries and more difficult trading conditions, along with a write-down on the value of its casinos, forced Star to seek additional financing twice last year. The first, at $1.20 per share, raised $800 million in February. The second, in September, raised $750 million at just 60¢ per share.
Mr Bell’s first inquiry pointedly noted it was “not in a position to affirmatively determine” the suitability of Star’s chief financial officer Christina Katsibouba, chief customer officer George Hughes and company secretary Jennie Yuen, who all remain at the company. Jessica Mellor, the chief operating officer, was promoted to run the Gold Coast casino.
He said the casino’s special manager, lawyer Nick Weeks, a former NRL executive, had been active in identifying weaknesses in the company. “These internal control measures … around the conduct of the casino are not there to be applied on a ‘best endeavours’ basis,” he said. “They are the law. The licence is a privilege, not a right.”