The Star Entertainment Group has reached a binding pact with the New South Wales (NSW) government. This agreement necessitates the company to keep a minimum number of workers at its Sydney operations.
The agreement, which was finalized with NSW Treasurer Daniel Mookhey, also involves Star Entertainment Group testing cashless and card-only gambling at its Sydney casino. This is a prelude to changes being implemented across NSW later this year.
The employment guarantee agreement was approved by Star Entertainment Group, NSW officials and the United Workers Union. Star Entertainment Group has promised to maintain a minimum number of employees, along with a specific proportion of full-time, part-time and temporary workers. The agreement is valid until June 30, 2030.
Under changes to the Casino Control Act, Star Entertainment Group will face penalties if it fails to fulfill its commitments. The employment commitments are subject to certain modifications, including in the event of a significant negative change.
Last August, Star Entertainment Group obtained concessions from the NSW government regarding casino tax rates. Since then, the company has been creating a transition plan to stabilize its Sydney casino operations and reduce further job losses.
Agreement to test cashless casino gambling
Star Entertainment Group has also agreed to test cashless and card-only gambling at The Star Sydney.
The state of New South Wales is spearheading a transformation of its regulatory structure, introducing cashless gambling and card-based gaming commencing in August 2024. This trial phase will encompass 51 slot machines and 8 gaming tables until the new framework is fully implemented.
Robbie Cooke, the Chief Executive Officer of Star Entertainment, expressed his gratitude for the collaborative efforts with the current New South Wales administration, which culminated in the finalization of this agreement. He emphasized the significance of this agreement in securing employment for the dedicated and hardworking team members in Sydney.
Cooke further stated that Star Entertainment remains committed to regaining the trust of the community and implementing reforms to restore its suitability. The company also intends to continue its role as a valuable contributor to the New South Wales economy.
Star Entertainment reported a full-year loss of A$2.4 billion.
In August of the previous year, Star Entertainment disclosed a full-year loss of A$2.4 billion (equivalent to US$1.6 billion, €1.5 billion, and £1.2 billion) after factoring in the cost of its casino value write-downs.
The company faced a series of penalties, resulting in A$2.8 billion in expenses for the year, categorized as “significant items.”
These expenses included a non-cash impairment of A$2.2 billion on goodwill and property assets for its Sydney, Gold Coast, and Brisbane operations. Additionally, there were A$595 million in regulatory and legal costs, A$54 million in debt restructuring costs, and A$16 million in redundancy costs.
These expenses, excluding the positive EBITDA increase of A$317 million, led to a post-tax deficit of A$2.4 billion.
In September of 2022, New South Wales determined that Star Entertainment Group was not suitable to possess a casino permit. The assessment by barrister Adam Bell emphasized a sequence of shortcomings in anti-money laundering and social accountability at Star Sydney Casino over an extended period. A year later, an evaluation of the advancement of Star Sydney Casino revealed that 22 out of the 30 suggested actions in the Bell report had been put into practice.
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