The Star Entertainment Group has inked a binding pact with the New South Wales (NSW) government to ensure a minimum workforce at its Sydney operations.
The Star Entertainment Group has entered into an employment assurance agreement in New South Wales.
Under the accord with NSW Treasurer Daniel Mookhey, the Star Entertainment Group will also commence a pilot program for cashless and card-based gaming at its Sydney casino. This is a prelude to reforms being implemented across NSW later this year.
The agreement has been sanctioned by the Star Entertainment Group, NSW authorities, and the United Workers Union. The Star Entertainment Group has consented to maintain a minimum workforce and uphold a specific ratio of full-time, part-time, and casual staff. The agreement is in effect until June 30, 2030.
Under revisions to the Casino Control Act, the Star Entertainment Group will face penalties for failing to fulfill its commitments. The employment commitment permits certain modifications in specific circumstances, including events of significant adverse change.
Last August, the Star Entertainment Group received concessions from the NSW government on casino tax rates. Since then, the company has been crafting a transition strategy to stabilize operations at its Sydney casino and curb further job losses.
Agreement to pilot cashless casino gaming
The Star Entertainment Group has also agreed to pilot cashless and card-based gaming at The Star Sydney.
The revamp of the New South Wales regulatory system will see the introduction of cashless gaming and card-based gaming initially in August 2024. The pilot program will encompass 51 slot machines and 8 gaming tables until the framework is fully enacted.
Star Entertainment’s CEO, Robbie Cooke, in response to the formalization of this agreement, stated: “Star Entertainment is appreciative of the constructive dialogue with the current New South Wales administration that resulted in the accord, which ensures job security for our dedicated and hard-working team members in Sydney.
“As we continue to strive to regain the trust of the community and implement the necessary changes to restore Star Entertainment’s suitability, we are also committed to continuing to play our part as a significant contributor to the New South Wales economy.”
Star Entertainment reported an annual loss of A$2.4 billion.
In August of the previous year, Star Entertainment announced an annual loss of A$2.4 billion ($1.6 billion/€1.5 billion/£1.2 billion) as the company factored in the cost of its casino value write-downs.
Star Entertainment faced a series of penalties and declared A$2.8 billion in spending for that year, labeled “major projects.”
This included A$2.2 billion in non-cash impairments for Treasury in Sydney, Gold Coast, and Brisbane, as well as goodwill and property assets. There were also 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 net loss of A$2.4 billion.
The state of New South Wales in September 2022 determined that Star Entertainment Group was not suitable to possess a casino license. The investigation by barrister Adam Bell uncovered a string of shortcomings in anti-money laundering and social responsibility at Star Sydney Casino over an extended period. A year later, an assessment of the advancement of Star Sydney Casino revealed that the casino had put into practice 22 of the 30 recommendations outlined in the Bell report.
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