ASX SGR: Jobs cuts at Star as new owners prepare to take control
The afternoon court proceedings were dominated by Dr Higgins explaining to the court documents existed warning Star's executives and directors of the risks of dealing with particular junket operators. http://{high roller vip casino|best high roller casinos|best high roller online casinos|trusted online casino for high roller players|high roller casinos / vip casinos|high stakes casinos|what are the best vip or high roller bonuses for us players?|what are the best casinos for high roller slot players?|best high roller casino|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co|Blackcoin co|Blackcoin|Blackcoin.co} has also alleged Mr Bekier and others ignored red flags about criminal ties with Asian gambling junket Suncity and failed to escalate concerns to the board. Star allowed Suncity to secretly operate an unbranded VIP room, known as “Salon 95,” which continued to exist after then-Star CEO Matt Bekier told regulators his company had severed business links with the junket. The operator also fraudulently permitted Chinese high rollers to withdraw a total of AU$900 million (US$586 million) for gambling using China UnionPay (CUP) credit cards while disguising these transactions as “hotel expenses.” The Bally’s-led bailout came on the very day cash-strapped Star was predicted to run out of money completely as it struggled with a dire liquidity crunch. They would require punters to set a limit on deposits or bets, or indeed the time they spend gambling, and enforce these technically.
Influencer marketing would be prohibited, and the most addictive games, including digital slot machines and online casinos, could not be promoted outdoors or near schools. Sponsorship and controlled advertising on licensees' own websites and social media channels would be allowed. The reform comes in response to the growing share of online gambling revenue flowing out of the country. The Finnish Competition and Consumer Authority estimates that half of the money spent by players in Finland on online gambling currently goes to foreign companies.
The agency is asking a federal court to impose a AU$400 million (US$260 million) fine on the troubled casino operator, which in April accepted a AU$300 million (US$195 million) bailout package from Bally’s Corp. and Aussie pub and slots mogul Bruce Mathieson. Both Star and Australia’s other major casino operator, Crown, have emerged from a range of high-profile scandals in recent years. Whereas most of the gambling market recovered rapidly after the end of pandemic restrictions, casinos floundered. Whatever happens to it and its casino assets, there are bigger questions about whether the age of unfettered gambling revenue for casinos may have already ended.
Without significant funds from the proceeds of crime, or exploitation of the vulnerable, casinos are clearly struggling. Although neither casino chain closed its doors, regulatory breaches led to appointment of special managers to oversee the business and hold the licences. Media reporting, inquiries, and royal commissions into Crown, and then Star, give some insight into how the casino business used to be run in Australia. But over the same period, expenditure at casinos declined by more than 35% nationally, and by 42% in New South Wales.
The new executive team led by former Crown boss Steve McCann is in a near-impossible position in trying to clear a financial minefield, in which any misstep will ensure the group’s financial collapse. What may have made the board’s myopia particularly egregious is that Crown’s unfolding scandal in 2019 provided a good idea of what kind of problems it needed to look out for in its own company. The admission by Theodore, who faces a fine and ban from managing a corporation, is not a big surprise. At the 2022 hearing into whether Star should retain its casino licence, he admitted to acting unethically when approving communications from the casino to NAB that tried to disguise banned gambling transactions as hotel expenses. “The real issue they’re tackling is the ability of the board to say they didn’t know,” says corporate governance expert Helen Bird. The Star Sydney houses about 1,500 slot machines, or pokies as they’re commonly called Down Under. Extending Week’s supervision is a win for The Star Sydney, as a decision to terminate the monitoring would have resulted in the casino’s gaming facilities being suspended.
Unfortunately, many of these people had strong links to organised crime gangs keen to launder their illegally acquired money. As ASIC tries to sort through who is responsible for Star’s predicament, the current board and management team are fighting a losing battle to keep the casino operator solvent. There are serious doubts that Star will survive long enough to unveil its half-year results at the end of this month. The receipt of cash funding will provide additional support in the near-term as we focus on putting in place additional liquidity measures and seek to implement a whole of company refinancing,” McCann detailed.
On Friday, Star struck a deal with Hong Kong investors Far East Consortium International and Chow Tai Fook Enterprises to offload its 50 per cent stake in the Brisbane Queen's Wharf casino development in exchange for $53 million. On Monday morning, Star confirmed that it had received an unsolicited offer from US casino and gaming group, to raise at least $250 million in capital. Casino operator Star Entertainment is mulling a bid from US gaming giant Bally's, that would give it at least $250 million in funding, in exchange for a controlling stake in the group. Star has been seeking a financial rescue deal to avoid collapse and on Friday announced its plan to refinance debt and sell its stake in Brisbane's Queen's Wharf. The provisions are used when a financially struggling company is considering a last-ditch restructuring attempt as an alternative to financial collapse and calling in administrators.