Star Entertainment Secures Job Guarantees and Pilots Cashless Gaming in Sydney
The Star Entertainment Group has signed a legally binding deal with the New South Wales (NSW) government to keep a minimum number of workers in its Sydney operations.
The Star Entertainment Group has also agreed to test out cashless and card-based gambling at its Sydney casino, as per an agreement with NSW Treasurer Daniel Mookhey. This is a stepping stone to changes being implemented in NSW later this year.
The employment guarantee agreement has been approved by the Star Entertainment Group, the NSW government, and the United Workers Union. The Star Entertainment Group has agreed to maintain a minimum number of employees, as well as a specific ratio of full-time, part-time, and temporary workers. The agreement is valid until June 30, 2030.
Under changes to the Casino Control Act, the Star Entertainment Group will face penalties for not meeting its commitments. The employment commitments will be adjusted in certain situations, including events of significant negative change.
In August of last year, the Star Entertainment Group received concessions from the NSW government on casino tax rates. The company has been working on a plan to stabilize its Sydney casino operations and stop further job losses.
Cashless gaming pilot agreement reached
The Star Entertainment Group has also agreed to pilot cashless and card-based gaming at The Star Sydney.
The overhaul of the New South Wales regulatory structure will see the introduction of cashless gambling and card-based gaming starting August 2024. This trial serves as a forerunner to the changes. The trial will be applied to 51 slot machines and 8 gaming tables until the framework takes effect.
Star Entertainment CEO Robbie Cooke, speaking on the officialization of the agreement, stated: “Star Entertainment is thankful for the productive collaboration with the current New South Wales government, which has ultimately led to an agreement that ensures job security for our dedicated and hard-working team members in Sydney.
“As we continue to concentrate on regaining the trust of the community and implementing the necessary changes to restore Star Entertainment’s suitability, we are also dedicated to continuing to play our crucial role in the New South Wales economy.”
Star Entertainment recorded a full-year deficit of $2.4 billion.
Last August, Star Entertainment announced a full-year deficit of $2.4 billion (€1.6 billion/£1.5 billion), as the company factored in the cost of its casino value write-downs.
Star Entertainment faced a series of penalties throughout the year, announcing $2.8 billion in expenses, which it labeled “significant items.”
These included a $2.2 billion non-cash impairment on goodwill and property assets for its Sydney, Gold Coast and Brisbane Treasury operations. There was also $595 million in regulatory and legal expenses, $54 million in debt restructuring expenses and $16 million in redundancy expenses.
These expenses, excluding the positive EBITDA of A$317 million, led to a net deficit of A$2.4 billion.
A study by Bell Lawyers highlighted persistent shortcomings by Star Sydney Casino concerning anti-money laundering and social responsibility. In September 2022, the New South Wales government declared that Star Entertainment Group was ineligible to possess a casino license. Twelve months later, an evaluation of the progress of Star Sydney Casino revealed that the casino had implemented 22 of the 30 actions suggested in the Bell report.
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