Following the ignominious departure of Robbie Cooke earlier this year, Star Entertainment announced June 26 that it has found its new CEO and managing director.
Steve McCann, former chief executive at Star’s longtime competitor Crown Resorts, will take the helm at Star effective July 8, pending regulatory approvals.
McCann led Crown from June 2021 through its eventual sale to U.S.-based Blackstone Group that closed a year later. He is one of the few executives who survived the multi-year regulatory barrage for both companies with a clean record.
Prior to Crown, McCann spent more than a decade as group CEO of construction and real estate giant LendLease.
According to the Sydney Morning Herald, McCann will collect a AU$2.5 million (US$1.66 million) signing bonus. The outlet said he could earn up to AU$10 million (US$6.6 million) by the end of the 2026 financial year through his bonus structure.
“Given his time with Crown and previous long-standing leadership at LendLease, he has the right credentials to lead The Star’s remediation program,” Star Chairman Anne Ward said in a statement. “His track record reflects his capability to work collaboratively with multiple stakeholders and lead meaningful transformational change and cultural renewal.”
The experienced executive will have his hands full with the new appointment, as he joins Star during its most turbulent period yet.
The company is anxiously awaiting the ruling of the Bell Two inquiry regarding its Star Sydney casino license, which is due by the end of July. Former Chairman David Foster and Cooke were found to have exchanged messages about potentially “going to war” with the NSW Independent Casino Commission (NICC).
Other messages from Foster showed a desire to pursue legal action against the NICC and even abolish it in favor of a comprehensive body that would oversee casinos and hotels and clubs, which operate the bulk of the slots across Australia.
Mandated harm minimization records were also found to be falsified, and the casino lost millions due to a faulty cash-out machine that wasn’t caught for over a month.
Cooke stepped down in March before the inquiry started, and Foster moved to a non-executive role on the board before leaving the board altogether June 24.
In its closing remarks on the inquiry, Star admitted it was unsuitable to operate the casino independently, but requested that the term of the state-appointed manager be extended. There is a chance the license may be revoked, in which case another operator could take it over.
Peter Cohen, director of regulatory affairs for The Agenda Group and a former regulator in Victoria, told GGB that McCann’s appointment is favorable to Star’s outlook.
He posited that the company’s chances of keeping its Sydney license are now “probably 70-30 rather than 50-50.”
In addition to Bell Two, McCann will also be tasked with navigating the August opening of Star’s casino at Queen’s Wharf Brisbane, a multibillion-dollar entertainment complex that is a joint venture with Far East Consortium and Chow Tai Fook Enterprises.
“I look forward to joining The Star at this crucial time,” he said in a statement. “I recognize that there are many complex issues and challenges for the company to address. I am committed to working with the Board and the various stakeholders to help drive change, restore confidence and achieve a sustainable resolution.”
In a trading update June 24, the company said it is forecasting full-year revenues between AU$$1.675 billion and $1.685 billion (US$1.11 billion and US$1.12 billion). That would be a year-over-year decline of just over 3 percent.
