Star Entertainment Group chief executive Robbie Cooke is leaving the company, according to a filing with the Australian Securities Exchange and reporting by Casino.org on 22 March 2024. He was appointed in July 2022, less than two years ago.
The departure comes while Star is the subject of another New South Wales inquiry into whether it is suitable to hold a casino licence in the state. An earlier inquiry, in 2022, found that it was not.
What the company has said
The ASX filing said Mr Cooke and the board consider a change in leadership to be in the best interests of the company. It said they had formed the view that his continuing as head of the group was "not going to be conducive" to the NSW Independent Casino Commission (NICC) finding The Star capable of becoming suitable to hold a licence in NSW.
Mr Cooke made a similar point in his resignation statement. He described the position as exceptionally disappointing, and said:
"In these circumstances, a change in leadership provides the best opportunity for the business to navigate the regulatory pressure it is facing."
According to a newspaper report cited by Casino.org, Mr Cooke told colleagues his departure came with "considerable reluctance and a heavy heart". These are the company's and Mr Cooke's own characterisations. The NICC's views have not been set out in the source material.
Star chair David Foster will serve as interim CEO while a global search for a successor takes place. Mr Foster thanked Mr Cooke for working to stabilise and resolve "a number of existential threats" to the business. He will receive AU$40,000 a month (US$26,109) in the interim role, according to the report.
Casino.org reports that Star's board recently concluded the latest NSW inquiry would likely find the company unsuitable to continue operating casino games unless there were further leadership changes. That is the report's account of the board's assessment, and the board's reasoning is not detailed in the source.
The regulatory background
Mr Cooke replaced Matt Bekier, who stepped down with Star chair John O'Neil after the 2022 inquiry. That inquiry, led by Adam Bell, determined that Star Sydney had lax money laundering controls and did little to prevent criminal organisations from infiltrating the integrated resort.
The inquiry also found a secret VIP gaming room at The Star Sydney, where Chinese nationals were brought to play by the Macau junket group Suncity. Suncity's founder, Alvin Chau, was found guilty by a Macau court in 2023 of 162 charges of fraud, illegal gambling and criminal association. He was sentenced to 18 years in prison, according to the report.
The 2022 findings gave Star until January 2024 to remedy its regulatory shortcomings. Last December, the NICC said a number of regulatory concerns remained at The Star Sydney and began a further inquiry, which it calls "Bell Inquiry Two". That inquiry is ongoing. The source gives the start of the latest inquiry as both December and February, so the precise timing is unclear.
About Star
Star is Australia's second-largest casino operator after Crown Resorts. Beyond The Star Sydney, it runs three Queensland casinos: The Star Gold Coast, The Star Brisbane and Treasury Brisbane. It also controls The Gold Coast Convention and Exhibition Centre.
The source does not say when the inquiry will finish, what penalties or outcomes are possible, or who might succeed Mr Cooke. It also does not disclose the terms of Mr Cooke's departure.