Fallen Star pledges to fight back
23% share slump on licence fear
SHARES in The Star Entertainment Group plunged 23 per cent amid concerns the company could be at risk of being found unsuitable to run its Sydney casino.
The share slump wiped almost $933m from the company’s market value.
It followed media reports alleging the casino group courted high-risk gamblers while knowing its antimoney laundering controls were deficient.
In a statement to the ASX on Monday, The Star said it considered a number of the allegations to be “misleading” and that it would co-operate with all regulatory authorities to address the reports.
“We will take the appropriate steps to address all allegations with relevant state and federal regulators and authorities, including Mr Adam Bell SC who is undertaking a regular review of The Star Sydney in accordance with the Casino Control Act 1992 (NSW),” the company said.
The allegations of The Star’s cavalier attitude towards properly vetting highrollers and international gambling tour partners – or “junket” operators – mirror those made against the James Packer-backed Crown Resorts that ultimately resulted in the Bergin Inquiry temporarily suspending Crown’s NSW casino licence this year.
And they emerge as the man responsible for prosecuting the case for Crown to lose its licence, former senior counsel assisting the Bergin
Inquiry Mr Bell, kicks off the NSW gaming regulator’s scheduled review of The Star’s suitability as a casino operator.
The news sent shares in the casino group – which operates a casino in Sydney and two in Queensland – down 23 per cent, or 98c, to $3.30.
The share slump reflects fears its growth plans such as a sale and leaseback of its Darling Harbour site or a renewed merger attempt with Crown will be put on hold.
NSW Premier Dominic Perrottet said the allegations, published by Nine Entertainment outlets, were “concerning” and he did not rule out taking additional action before Mr Bell’s review is finalised.
A spokesman for Queensland’s Office of Liquor and Gaming Regulation said the regulator had “already commenced additional inquiries and compliance activities relating to Queensland casinos”, but did not say whether it planned to zero in further on The Star.