The Star Entertainment Group has suffered a $2.44 billion loss during FY23, driven by the writedown of its casinos in Sydney, Gold Coast and Brisbane.
The Star hit above its predicted earnings before interest, taxation, debt and amortisation (EBITDA) by $22m and reported a normalised net profit of $41m.
Over the past year, The Star has tackled two state inquiries, multimillion dollar fines, two revoked state casino license and four shareholder class actions.
“To say it has been a challenging year completely understates the lived experience at The Star over the last 12 months,” Star Group CEO and managing director Robbie Cooke said.
“The consequences flowing from the damage to our social licence are felt daily by team members on multiple levels, reinforcing the critical need to understand the privilege and responsibility that comes with holding a casino licence. The ancillary challenges that have arisen in the year, and there are many, all follow from the breaches of trust identified in the Bell and Gotterson reports.”
The group said that it is focusing on remediation. This will include significant uplift in resources in AML, Safer Gambling and Risk domains, a refresh of senior executive team and board, all internal controls in NSW replaced in 8 month project involving 546 unique controls, a comprehensive draft remediation plan submitted and completed external culture review and root cause review.
In September last year, an inquiry found The Star Sydney unfit to operate a casino in Sydney.
The inquiry, led by Adam Bell SC, happened earlier this year and featured allegations of organised crime links, money laundering and fraud at its casino in Pyrmont. The inquiry found that “a number of extremely serious governance, risk management and cultural failures of The Star Entities occurred” before and during the period being reviewed.