Star Entertainment Group announced that it has signed a contract with New South Wales authorities, which requires the group to keep a certain number of employees at their Sydney operation.
Star Entertainment, in accordance with the agreement it has signed with NSW Treasurer Daniel Mookhey will begin to test cashless play and the use of cards at its Sydney Casino. This is the precursor of reforms that will be implemented later in NSW.
Star Entertainment, the NSW government and United Workers Union have all approved of the jobs guarantee agreement. Star Entertainment has committed to maintaining a certain head count and ratio of part-time employees, full-time workers and casual staff. This agreement will last until 30th June 2030.
The Casino Control Act has been amended to allow penalties to be imposed on The Star if it fails to meet its commitment. In certain situations, such as materially adverse changes to the economy, certain adjustments are permitted.
Star Entertainment was able to negotiate concessions with NSW on the casino tax rates in August of last year. Since then, it has worked on a plan of transition to stabilize operations in its Sydney casino.
Trial of Cashless Casino Play has been agreed.
Star Entertainment also has agreed to trial cashless play and playing with cards at The Star Sydney.
This trial will be a prelude to changes to the NSW regulator framework that will introduce card-based gaming in August 2024. This trial will cover 51 poker machines, eight table games and the regulatory framework until it comes into force.
Robbie Cooke said, “The Star is grateful for the constructive engagement that the NSW Government has undertaken that led to the finalisation of this agreement, which provides certainty of employment for our hard-working and dedicated team members in Sydney.”
We are committed to continuing our valuable contribution to the NSW economic growth as we work to regain the trust of The Star’s community.
Star Entertainment’s AU$2.4bn full-year loss
Last August, Star Entertainment announced a full-year loss of AU$2.4bn ($1.6bn/EUR1.5bn/PS1.2bn) as it counted the cost of a write down in the value of its casinos.
Star Entertainment has been hit with a series of fines and penalties. The company announced that it spent $2.8 billion on “significant” items during the past year.
The impairment was AU$2.2bn, which included the goodwill of Sydney, Gold Coast, and Treasury Brisbane and their property assets. The regulatory and legal expenses were AU$595m. Debt restructuring costs were AU$54m. And redundancy cost was AU$16m.
These costs, minus a growing and positive EBITDA (AU$317m), means an after-tax loss of AU$2.4bn.
Star Entertainment’s casino license in New South Wales was revoked in September 2022. Adam Bell SC’s Report outlined The Star Sydney’s AML and Social Responsibility Failures dating back to years. The Star Sydney had only implemented 22 out of the 30 recommendations from the Bell Report.
