Star Entertainment has been declared unable to regain control of its Sydney casino after a damning investigation exposed widespread failings in the company’s operations.
The NSW casino regulator today suspended trading in Star shares as it considers the future of the operator’s licence.
What will happen to Star’s more than 70,000 shareholders, who have invested $4.7 billion in joint ventures with the NSW and Queensland governments? As of February this year, Star had $2.178 billion in accumulated losses and declared a remaining capital of $2.5 billion, which now appears to be at risk of being wiped out as shares have been placed on a “trading halt”.
The regulator’s chief commissioner Philip Crawford commented on the situation:
It has only very recently turned its attention to addressing issues that should have been a priority before.
A second investigation has found the company still fails to meet the required standards of responsible governance. Star’s Sydney remains suspended after an earlier investigation found serious lapses in anti-money laundering and terrorism controls. Despite this, the casino has continued to operate under a manager appointed by the regulator.
Source : TheGamblest