Questionable Financial Practices and Toxic Work Environment Exposed in Star Investigation
The Star was deemed unsuitable for a casino license due to the revelation of a gang-linked junket operator running an illicit cage within a premium gaming room.
Allegations from a whistleblower that the boardroom leaders at Star casino took a defensive stance against regulators are under investigation. Additionally, an executive was reportedly encouraged to manipulate company figures.
The Star Entertainment Group is facing a second probe led by Adam Bell SC to determine its suitability to operate the key Sydney facility. Concerns were raised about the company’s lack of proactive implementation of reforms.
An initial investigation led by Mr. Bell found The Star unfit to hold a casino license after it was revealed that a gang-linked junket operator was operating an illicit cage within a premium gaming room and Chinese debit-card transactions were disguised as hotel expenses.
Nicholas Weeks, a regulator-appointed manager, took over casino operations to ensure continued trading after the license was suspended in 2022 following the first inquiry.
During the inquiry on April 16, anonymous and unsubstantiated allegations were presented to Mr. Weeks.
Counsel assisting the inquiry, Caspar Condie, outlined a whistleblower complaint from February 28, suggesting that the board was largely unconcerned about the second Bell review and had taken a defensive stance.
Secret emails disclosed on April 15 revealed that Star’s former CEO, Robbie Cooke, and chair, David Foster, planned to counteract the regulator’s actions.
Mr. Weeks noted similarities between the whistleblower allegations and the emails. The anonymous complaint also highlighted concerns about a toxic culture within the organization, which Mr. Weeks disagreed with.
The whistleblower complaint has been referred to an external law firm for investigation, and the matter is ongoing. The issues have yet to be addressed with Mr. Cooke, who remains a consultant for Star.
Former CFO Christina Katsibouba also testified at the inquiry on April 16, detailing the company’s financial struggles and confirming that an executive had pushed her to improve the company’s financial figures.
Ms. Katsibouba mentioned earnings challenges due to increased controls, competition from Crown in Sydney, and economic volatility post-COVID-19. She also discussed a significant loss from a casino error that prompted adjustments to financial records suggested by the company’s General Manager of Investor Relations.
After the second Bell inquiry was announced, Ms. Katsibouba expressed concern among board members about the possible outcomes. The company’s share price dropped more than 14 percent on April 16.
