The Star group CEO steps down amid suitability concerns

Mar 25, 2024 Newsdesk Latest News, Top of the deck, World  

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Australian casino operator The Star Entertainment Group Ltd announced on Friday that Robbie Cooke had stepped down that same day as the group’s chief executive and managing director. “David Foster will take on additional duties as executive chair while a search for a permanent CEO is conducted,” stated the company in a filing.

“Mr Cooke and the board consider a change in leadership to be in the best interests of the company at this time,” said the firm.

The company said 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.

Mr Cooke will remain a consultant to The Star for a period of six months, “to enable an orderly leadership transition and provide continuity across business activities,” The Star added.

The casino firm has also announced that Christina Katsibouba, the group’s chief financial officer, had also resigned, “and will be replaced on an interim basis by Neale O’Connell. Mr O’Connell, who served previously as CFO of Australia-based Tatts Group Ltd, will report to Mr Foster.

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.

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

As a result, the NICC intends to seek an extension of the term of Nicholas Weeks as special manager of The Star casino “for a further period to 30 September 2024,” said the firm.

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.

Mr Weeks, a representative of Wexted Advisors, a Sydney-based business consultancy specialising in corporate restructuring, has been appointed a manager for The Star’s casino operations in Queensland.

Friday’s announcement quoted Mr Foster as saying that the casino operator remains “absolutely committed to being judged suitable to hold a casino licence in New South Wales and Queensland”.

Mr Cooke said in prepared remarks that he had “reached the conclusion” that his continuation as The Star’s group CEO was “not going to be conducive to the NICC determining to find The Star capable of becoming suitable to hold a casino licence in New South Wales”.

He added: “In these circumstances a change in leadership provides the best opportunity for the business to navigate the regulatory pressure it is facing. I take comfort in what we have achieved as a team over the last 16 months, and I’m certain the company is now on the right path.”

The Star is building a third casino resort in Queensland, the Queen’s Wharf Brisbane scheme, in partnership with two Hong Kong-based businesses: Chow Tai Fook Enterprises Ltd and Far East Consortium International Ltd. The venue is due to open this year.

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