For the second time in the last month, Australia’s Star Entertainment Group has been deemed unsuitable for casino licensure, this time for its Brisbane and Gold Coast casinos in Queensland. The operator will be given one final chance for redemption before its license is officially revoked.
The ruling came as a result of an extensive investigation into Star’s operations in the state, which was conducted by Robert Gotterson AO, a former judge. Its findings were made public early October 6.
According to Queensland Attorney-General and Minister for Justice Shannon Fentiman, the report—known as the Gotterson Review—featured 12 recommendations, all of which will be adopted moving forward. Most of these recommendations are largely similar to those enforced by the Victorian government in the 2021 inquiry of Crown Melbourne.
Fentiman said in a statement that after considering the “serious and concerning findings of the Gotterson Review,” she has “formed the view that The Star is unsuitable to hold a license in Queensland.” She noted, however, that the company “will be given the opportunity to respond to that finding through a show cause process.”
“Following the show cause process, a range of remedial actions will be available to Government, including fines, suspending or canceling licenses, and as recommended by Mr. Gotterson, appointing a special manager, as has been done in Victoria,” she concluded.
In addition to the appointment of an independent manager to oversee Star’s remediation process, all casinos in the region will now be subject to periodic review, and all licensed operators will be required to pay a new supervision fee as part of their licensure. A new “Code of Conduct for Safer Gambling” will also be enforced, as well as updated limits on cash transactions.
Queensland will also follow in the footsteps of New South Wales (NSW) by increasing the maximum fine for operators to US$65 million, but it will not follow suit in making changes to its regulatory structure. Fentiman asserted that there was no “sufficient justification” for such changes.
The recent ruling is the latest in a series of misfortunes for Star, as the operator was also deemed to be unsuitable to retain its Star Sydney casino license in New South Wales (NSW) mere weeks ago.
The NSW Independent Casino Commission (NICC) has yet to make a decision on the matter, but the operator has submitted a statement pleading to stay operational under “strict supervision.” The general consensus is that the NICC will appoint a special manager and levy fines rather than revoke the license altogether.
Additionally, interim CEO Geoff Hogg resigned from the company on September 26, in what many feel was an attempt to get out before the Queensland ruling was delivered. Hogg previously oversaw both of Star’s Queensland casinos before being named interim CEO, and likely contributed to the failures outlined in the Gotterson Review.
Executive Chairman Ben Heap is currently undertaking Hogg’s duties until Robert Cooke receives regulatory approval to take over as CEO and managing director.
