Property News Media Blog: Star Entertainment Group names Robert Cooke as new Managing Director and CEO

Star Entertainment Group names Robert Cooke as new Managing Director and CEO

Australia’s Star Entertainment Group Limited has named former Tatts Group boss Robert Cooke as the company’s new Managing Director and CEO.

Cooke replaces Matt Bekier in the role, his predecessor having stepped down amid the recent regular review into Star’s operations which uncovered a series of failings around anti-money laundering controls at The Star Sydney. Chairman John O’Neill also departed last month.

“A comprehensive search conducted by global executive recruitment firm Spencer Stuart identified a number of quality candidates,” said Interim Chairman Ben Heap.

“Following a thorough process, the Board concluded that Robbie was the standout candidate with the ideal combination of experience, capabilities and attributes to lead The Star.

“Robbie is a trusted, respected and highly experienced chief executive. He has been the CEO of major ASX 200 listed companies and brings extensive commercial experience in operating and driving transformation programs within highly regulated environments, overseeing large workforces and building executive teams in multi-jurisdictional locations.

“As CEO of the lotteries, wagering and gaming operation at Tatts Group, he led a comprehensive transformation program and secured valuable licence agreements with various State governments. In his role at Wotif.com, Robbie helped build a market leading business across the hotel sector during a period of significant industry disruption. Most recently at the Australian bank and payment fintech, Tyro Payments, he led the company through the post Financial Services Industry Royal Commission environment with a focus on risk culture, cultural alignment and employee engagement whilst driving strong transaction growth from ~$13 billion [AUD] to in excess of $30 billion [AUD] over 4 years.

“Given The Star’s significant investments to develop world-class tourism and entertainment destinations in South East Queensland and Sydney, the Company will benefit significantly from both his understanding of the industry’s regulatory environment and extensive insights and experience across the hotel and broader hospitality sector.

“Robbie is well placed to lead The Star and restore confidence in the organisation. He is an outstanding choice to guide the Company through its critical ongoing renewal program, a body of work already underway that will deliver a number of near and medium-term initiatives focused on governance, culture, training, systems and technology.”

Cooke, whose appointment and commencement date will be confirmed upon gaining regulatory approval, said he was committed to helping Star rebuild its reputation.

“There are challenges for The Star that have been well documented,” he said. “They will be my priority and focus. Ensuring continuity of the business through a comprehensive renewal program is of paramount importance.”

Property News Media: Blackstone gets green light to operate Crown Sydney Casino

Blackstone gets green light to operate Crown Sydney Casino

The NSW Independent Liquor & Gaming Authority has approved funds manager Blackstone’s suitability to hold a casino licence in NSW, paving the way for the company to become the operator of Crown Sydney casino.

The NSW Independent Liquor & Gaming Authority has approved funds manager Blackstone’s suitability to hold a casino licence in NSW, paving the way for the company to become the operator of Crown Sydney casino. 

Authority Chairperson Philip Crawford said Blackstone had been subject to an extensive probity assessment that examined its capacity to address the risks and issues of concern identified in the Bergin Report.

“The probity assessment has also resulted in certain persons being approved to become “close associates” of Crown Sydney,” Mr Crawford said.

“These approvals are a key step in the Authority’s ongoing work to ensure Crown Sydney is able to fully meet its undertakings for major operational, governance and structural reforms.

“As the prospective owner of Crown Resorts, Blackstone has been required to demonstrate the highest standards of probity as well as a commitment to deliver the full suite of operational changes recommended by the Bergin Inquiry.

“This commitment is vital to ensure Crown Sydney is free from criminal influence and properly manages the risks of harm associated with casino activities.” 

The Authority’s regulatory approvals follow a meeting of Crown shareholders on 20 May that voted overwhelmingly to accept Blackstone’s takeover offer. 

Mr Crawford said Blackstone has also been required to meet certain conditions under a private equity model of ownership.

“These approvals and conditions are dependent on Blackstone gaining Federal Court approval for its takeover of Crown, as well as the necessary regulatory approvals from Victorian and Western Australia regulators, Mr Crawford said.  

“Separately, the Authority has worked closely with Crown on plans for a conditional opening of gaming at Crown Sydney  

 “This would allow the Authority to monitor the implementation by Crown of  its obligations under revised internal control measures.”

Property News Media: Star 'not suitable' for casino licence

Star 'not suitable' for casino licence

A period of "deep reflection" is needed at Star Entertainment before the gaming giant is fit to hold a casino licence, an inquiry into its Sydney casino has been told. 

The NSW gaming regulator inquiry has examined claims the ASX-listed company enabled suspected money laundering, organised crime, fraud and foreign interference at The Star Sydney as part of assessing its fitness to hold a casino licence.

The 36 day inquiry was told notorious junket Suncity operated an illegal cage at the casino, that the venue flouted rules on China Union Pay debit cards on which $900 million was transacted, and that Star staff lied to banks and did not do enough in dealings with regulators.

There was evidence that Star worked covertly to stop the public hearings taking place.

"We submit that the evidence in the public hearing establishes that The Star is not suitable to hold the casino licence and that its close associate Star Entertainment is not suitable either," counsel assisting Naomi Sharp SC said in closing submissions on Tuesday.

Ms Sharp said Star and its Sydney casino were only at the start of their journey "about what has gone wrong within these organisations".

"There has not yet been the period of deep reflection which of course will be necessary in order to develop a concrete plan about what ... can bring these corporations into a position of suitability," she said.

She urged Adam Bell SC, who is helming the inquiry, to adopt the approach set out in the Finkelstein review of rival Crown Resorts that if "most norms" are infringed then a company's "journey is at its end".  

Ms Sharp said there was a lack of supervision in Star's international VIP team, headed by John Chong and then Marcus Lim, with "certain shortcomings" existing on high-value patrons, and failures to notify Star's board.

The inquiry has previously been told a Chinese-born high roller about whom The Star Sydney harboured potential money-laundering concerns turned over more than $2 billion at the venue. There was also testimony of Star staff providing fake source of funds documents to the Bank of China in Macau.

Star's legal team also came in for criticism, with Ms Sharp pointing to "abuse" of legal professional privilege and describing some Star legal practices as unethical.

She attacked evidence of Star lawyers, especially that of ex-chief legal and risk officer Paula Martin, labelling her testimony pedantic, technical, and non-responsive, and arguing she failed to take personal responsibility.

Ms Sharp also critiqued evidence of Star's former general manager of financial crime and investigations, Kevin Houlihan, over his statement she said was "like entering a labyrinth" and "not a forthcoming account".

There was "very considerable concern" about the evidence of former chief financial officer Harry Theodore, while the testimony of former chief executive Matt Bekier, who stepped down earlier this year, was praised as "frank and candid".

On risk management, Ms Sharp described Star's framework as containing "very serious" failings in the international VIP team and within The Star Sydney, and the venue's possible underpayment of gaming duty.

Responsibility for risk shortcomings lay with internal casino divisions, senior management and the board, she said.

Ms Sharp SC outlined 26 areas she would address in closing, including looking at whether Star failed to pay sufficient NSW gaming duties and if it breached continuous disclosure obligations in selective briefings to investors.

There has been a clean-out of Star top brass since the inquiry began, including Mr Bekier, Mr Theodore, chief casino officer Greg Hawkins, Ms Martin and board chairman John O'Neill.

The inquiry continues on Tuesday.