Star shares slip despite temporary licence reprieve in Queensland
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More news: Shares in Star Entertainment Group were down 0.5% to 46 cents despite the embattled casino operator getting a temporary extension on its licence suspension.
The Queensland government extended the date of licence suspensions for The Star Gold Coast and Treasury Brisbane casinos to 20 December from 31 May, giving it additional time to demonstrate its fitness to operate the two casinos.
Star shares have slumped nearly 60% over the last 12 months as the casino operator fronts a second inquiry by the NSW regulator into its suitability to operate its Star Sydney casino.
Star gets reprieve on Queensland licence suspension
The news: Star Entertainment Group has again received a reprieve from the Queensland government as it has been given additional time to demonstrate its fitness to operate casinos in Brisbane and the Gold Coast.
The numbers: The Queensland government has approved changing the date of licence suspensions for The Star Gold Coast and Treasury Brisbane casinos from 31 May to 20 December. Star said it has been advised that this will allow the state government to consider the outcomes of the second NSW Inquiry into The Star Sydney and to better assess its remediation progress.
The Star's share price last closed at $0.46 and over the last 12 months has plunged 59.29%.
The context: The decision comes as a reprieve for the embattled casino operator, which is fronting a second inquiry by the casino regulator in NSW to decide whether Star has done enough to change its culture since its licence was first revoked in 2022, and its suitability to operate casinos in NSW. It has resulted in the departure of its CEO and other management changes.
The Queensland government fined the casino operator $100 million in December 2022 and gave it a year to get its house in order following a similar inquiry into its operations in the state.
Failure to do so could lead to suspension of the group’s Queensland gaming licence for 90 days. It extended that deadline to May 31, 2024, but has given the casino operator an additional six and a half months to prove its progress with remediation.
The source: ASX announcement
