In a landmark development, Star Entertainment has come to terms with the New South Wales (NSW) authorities and the United Workers Union on a jobs guarantee agreement that ensures job security for its workforce until June 30, 2030. This arrangement, confirmed by NSW Treasurer Daniel Mookhey, envisages a commitment by Star Entertainment to uphold a minimum headcount along with specific ratios for full-time, part-time, and casual employees.
The agreed-upon job security comes amidst Star Entertainment’s plans to trial cashless and carded gameplay at its Sydney casino—a move seen as laying the groundwork for broader regulatory reforms in the state slated for later this year. These reforms aim to introduce a cashless gaming environment across NSW from August 2024.
This proactive engagement is part of a succession of measures following an August concession that Star Entertainment secured regarding casino duty rates in the state. As a recuperative step, Star Entertainment has been concentrating on a transition plan that aims to solidify its Sydney operations and dissuade further workforce reductions.
The forthcoming pilot at The Star Sydney will involve 51 poker machines and eight table games and is set to precede the anticipated NSW regulatory framework change. The initiative indicates a decisive step by Star Entertainment towards aligning with emerging trends in responsible gambling and keeping pace with regulatory expectations.
The announcement by Robbie Cooke, Star Entertainment’s chief executive, underscores the company’s resolve to restore trust and adhere to new standards required to reestablish its suitability as a casino operator. Cooke emphasized the importance of the agreement in providing employment certainty, reflecting the company’s dedication to its team and contribution to the NSW economy.
In recent times, Star Entertainment has navigated rocky financial waters, with reports in August revealing a staggering full-year loss of A$2.4 billion, a fallout from significant asset writedowns. The company’s financial statement detailed “significant items” of expenditure amounting to $2.8 billion within the fiscal year. A breakdown of these costs showed a non-cash impairment of A$2.2 billion associated with the goodwill and property assets of its Sydney, Gold Coast, and Treasury Brisbane casinos. Additionally, Star Entertainment incurred regulatory and legal fees totaling AU$595 million, debt restructuring charges of AU$54 million, and redundancy payments of AU$16 million. Notwithstanding these substantial outgoings, the company reported a positive EBITDA of AU$317 million.
The aftermath of financial tumult has not been limited to balance sheets. September 2022 brought a scathing verdict when Star Entertainment was branded unsuitable to hold a casino license in New South Wales. A report by Adam Bell SC was damning, revealing long-term failings in anti-money laundering (AML) and social responsibility at The Star Sydney.
Nevertheless, a review conducted a year later presented a silver lining, indicating that the casino had successfully implemented 22 out of the 30 measures recommended by the Bell report. This progress reflects Star Entertainment’s concerted efforts to pivot from past missteps and ensure compliance with regulatory demands.
The recent transformation initiatives—including adherence to the jobs guarantee and the trial of cashless and carded play—signal a refurbished ethos at Star Entertainment. The enterprise is embarked on a journey of rebuilding and reinstating its credentials, with its eyes fixed firmly on the future, both for its workforce and its role within the broader context of the NSW economy.
