The Star has announced that Steve McCann, who was previously the CEO of Crown Resorts, will begin serving as Group CEO and Managing Director of The Star starting July 8th, 2024. As highlighted in the announcement, Mr McCann was the one who led Crown Resorts through a period of extensive remediation measures and reform, which eventually resulted in both Crown Sydney and Crown Melbourne retaining their respective regulatory licences.
The Star has been undergoing its own recovery procedures after the year 2022 saw the company be scrutinised for a range of violations of anti-money laundering laws. The company was subject to an investigation by the New South Wales Independent Casino Commission (NICC). The Star was found unfit to retain its licence because of this probe, and the NICC also forced the company to pay a fine of AU$100 million. The inquiry, then led by Adam Bell SC, was followed by a second probe that commenced earlier this year and is set to end on July 31st.
Mr McCann will be joining the Star at a time when the company is undergoing significant remediation procedures, and according to Anne Ward, current Chairman of the Star, the Board is “very pleased” with this turn of events given his experience. “His track record reflects his capability to work collaboratively with multiple stakeholders and lead meaningful transformational change and cultural renewal,” she added, and this would be invaluable for the Star’s own transformation.
Mr McCann also issued a statement, saying he was looking forward to joining the Star and recognised the problems that the Star must tackle. He further stressed that he would work with the Board and stakeholders to ensure a sustainable resolution and restore confidence in the Star’s brand.
Q4 2024 Will be Less Profitable for The Star Than Q3 According to Estimates
Between The Star’s expenses in relation to the ongoing remediation procedures and the various economic challenges in Australia, the company seems to be facing financial difficulties. In a trading update released on June 24th, The Star highlighted estimates according to which the Group revenue for 2024’s fourth quarter will be 4.3% less than Q3 of this year. It is also expected that the said revenue will be 3.3% lower than what was recorded during 2023’s fourth quarter. In 2024, the total Group EBITDA (earnings before interest, taxes, depreciation, and amortisation) is projected to be between AU$165 million and AU$180 million.
The company’s leadership was also subject to scrutiny in 2024 due to the situation that led to Ms Ward’s appointment as Chairman of the Board this spring. Namely, it was revealed that the previous Chair, David Foster, and former CEO, Robbie Cooke, had made concerning statements about the NICC and the independent manager overseeing the company, Nicholas Weeks, and how they were considering filing a class action against the regulator. These discussions, along with other remarks that Mr Foster would later say he regretted, had apparently been the result of Mr Foster’s dissatisfaction with how casinos are regulated in New South Wales compared to pubs and other establishments.
- Author
Daniel Williams
