GGRAsia – Australia’s Star Ent appoints Steve McCann as new CEO

Australia’s Star Ent appoints Steve McCann as new CEO

Jun 26, 2024 Newsdesk Industry Talk, Latest News

Australian casino operator The Star Entertainment Group Ltd said on Wednesday that it has appointed Steve McCann as its group chief executive and managing director, with effect from July 8.

Mr McCann will take over from interim group chief financial officer Neale O’Connell, who had recently been appointed as Star Entertainment’s acting CEO.

He will receive a signing-on bonus of AUD2.5 million (US$1.7 million), and have a fixed remuneration of AUD2.5 million per year. He could earn more than AUD10 million by the end of the 2026 financial year, including incentives, if he succeeds in overhauling the company’s culture and effectively implements its remediation programme.

Mr McCann previously served as the group CEO and managing director at Australian market rival gaming operator Crown Resorts Ltd.

Star Entertainment said in a Wednesday filing: “Mr McCann is a highly experienced global executive who has held numerous key leadership roles during his executive career over the past 28 years, including in gaming, leisure and real estate.”

It added: “His most recent role as chief executive officer and managing director at Crown Resorts Ltd saw him lead Crown through significant reform of its operations and culture.”

The update quoted Mr McCann as saying: “I look forward to joining The Star at this critical time. I recognise that there are many complex issues and challenges for the company to address.”

He added: “I am committed to working with the board and the various stakeholders to help drive change, restore confidence and achieve a sustainable resolution.”

Australia-listed Star Entertainment is currently facing regulatory action in the Australian states of New South Wales and Queensland.

The company’s licence for its flagship Sydney casino (pictured), in New South Wales, was suspended “indefinitely” from October 2022, and placed under state-government supervision.

In March, group chief executive and managing director Robbie Cooke stepped down, with the company saying at the time that the continuation of Mr Cooke’s leadership “was not going to be conducive to the New South Wales Independent Casino Commission (NICC) determining to find The Star capable of becoming suitable to hold a casino licence” in that Australian state.

The company has also seen a slew of other management changes earlier this year, with group chairman David Foster being the last to exit, in April.

The NICC is currently conducting a second inquiry into Star Entertainment’s suitability to hold a casino licence in the state. Lawyer Adam Bell – who led the first public inquiry – is carrying out public hearings as part of the second review.

The licences for the company’s two casinos in the state of Queensland – The Treasury Brisbane and The Star Gold Coast – were also suspended in December 2022, and placed under state-government supervision.

In May, the company confirmed receiving “inbound interest from a number of external parties” regarding potential investment in the firm. But it said at the time that “none of the approaches” had “resulted in substantive discussions”.