Published
Land-BasedCasinoFinancial

The Star Entertainment Group to repay US$9.2m in wages

The Star Entertainment Group will pay AU$13m (US$9.2m) in underpayments to current and former staff as part of a retrospective wage review.

thestar wages

The underpayment of wages was identified through a six-year retrospective wage review of salaried team members, with the annual salary of certain team members “not insufficient” in terms of their award entitlements such as overtime and penalty rates.

The Star plans to take a provision of AU$13m in its 1H FY2020 accounts for the expected cost of remediation, which includes back payments, interest and superannuation contributions.

The company noted that it has informed the Fair Work Ombudsman and the United Workers Union of its decision, adding that it has “improved its processes, systems and training and has a plan in place to ensure salaried team members’ pay is correct moving forward.”

The Star MD & CEO Matt Bekier commented: “We apologise to any team member impacted by the payment shortfall and we are committed to doing the right thing by acting transparently. Our priority is to address this issue and to ensure that it doesn’t happen again.”

The Star also provided a 1H FY2020 earnings update, with the group noting that such earnings have been “materially impacted by COVID-19 related property shutdowns, operating restrictions and border closures.”

The operator will release its financial results for the period on 17 February 2022, but noted that it expects to report normalised EBITDA of AU$28-AU$30m, and a normalised net loss of AU$73-AU$75m.

“The prevalence of the Omicron variant of COVID-19 impacted trading results in December and January, with a peak in mid-January,” a statement from The Star read. “This impact has subsequently eased and trading continues to progressively improve.”

Premium+ Connections
 
Premium

PIN-UP Partners

 
Premium

GammaStack

 
Premium

1xBet Partners

 
Premium

Galaxsys

 
Premium

Digitain

 
Premium

Sport Generate

 
Premium

Imagine Live

 
Premium

RISK

 
Premium

Lynon

 
Premium

Revsharks

 
Premium Connections
Consultancy

SCCG Management

Executive Profiles
Zeal Network SE

Stefan Tweraser

VIP Play

Les Ottolenghi

Scientific Games

Keshav Pitani

Social & App

Spribe CEO exclusive: Simplicity is the foundation

Spribe CEO David Natroshvili speaks to Gambling Insider abou...

Redefining iGaming: A history of crash games

Crash games is a growing vertical that has taken gambling by...

A certain something: What makes crash games special?

Crash games. They’re simple, they’re easy to learn and,...

Smarter innovation to shape the future

Spribe CCO Giorgi Tsutskiridze discusses the past, present a...

Facing Facts: The corner of quarterly contemplation

With Q1 reports out across the industry, Gambling Insider co...

Taking Stock: A guide to key stock prices across the industry

Gambling Insider tracks prices from some of the industry’s...

15 years of Gambling Insider: From the Founders

Over the last 15 years, Gambling Insider magazine has interv...

15 years of Gambling Insider: The Awards over time

Global Gaming Awards Event Manager Mariya Savova gives us he...