The Star Entertainment Group has received a six-month extension from the Queensland Government to showcase its suitability in operating casinos in Brisbane and the Gold Coast.
Originally set to conclude next Friday, the 12-month deadline has now been extended until 31 May, allowing The Star additional time to exhibit its capability of managing the Queen’s Wharf that’s under construction and its existing Gold Coast casino.
Failure to demonstrate compliance could lead to a 90-day suspension of the group’s gaming licence in Queensland. However, on Friday, The Star disclosed to the Australian Stock Exchange that Queensland’s Attorney-General, Yvette D’Ath, has greenlit its 640-point remediation plan.
D’Ath said that any failure to adhere to this plan would subject Star to further disciplinary action, including fines of up to AU$5m. She noted that while there's evidence of top-down changes within Star, it's still early in the transformation process.
In conjunction with the extension, the appointment of special manager Nicholas Weeks has been extended for another year.
Star Entertainment CEO Robbie Cooke said: “We’re pleased to have our remediation plan approved in Queensland. It’s an important step on our path to returning to suitability in Queensland and will track and hold us accountable throughout the multi-year program we are committed to delivering.
"At the same time, we are fully aware that successful implementation of the Remediation Plan will require the utmost rigour and discipline.”
The extension comes after The Star's recent capital restructuring and refinancing strategies aimed at enhancing financial flexibility and optimising its capital structure. These measures, including equity infusion and securing new debt facilities, are aimed at aligning with the company's initiative to rebound post-pandemic.
The company's appointment of Jessica Mellor as the CEO of Star Gold Coast in October 2023 is also part of its organisational restructuring, with the goal of improving operational accountability across its properties.
