US hospitality giant Hard Rock International has denied rumors that it is planning to make a bid for the Australian casino giant The Star Entertainment Group. The speculations ran wild after some reports that a consortium of parties including Hard Rock’s Pacific branch had supposedly expressed interest in the embattled Australian company.

Hard Rock International to Take Legal Action Amid Acquisition Speculations

In a recent statement, Hard Rock International noted it is perplexed about these claims. The company emphasized it has not authorized any discussions or negotiations in connection with a potential acquisition of The Star, reported The Australian. 

Hard Rock International further added that it is going to take legal action to protect the reputation of its brand as no third parties have been authorized to associate Hard Rock with a potential bid for The Star. The company also highlighted that only official company communication channels should be utilized for accurate information. 

The Star Entertainment Group announced earlier that external parties have indeed expressed interest in acquiring the company. However, The Star noted that there were no substantive discussions in connection with the proposal. 

Still, The Star provided information that part of the consortium that expressed interest was a local partner affiliated with Hard Rock International.

After the initial announcement from The Star, the company shares surged but following the statement dismissing the association of Hard Rock International with any potential bid drove the share price down again.  

The Star Faces Scrutiny: Second Probe Into Casino License Suitability

The Star has been embroiled in a long-lasting investigation into violations of anti-money laundering rules and ties with Asian junket operators. The company is still under scrutiny from Australian gambling regulators.

The company is currently facing a second investigation into its suitability to hold a New South Wales casino license. This is due to governance and compliance issues, which were uncovered during the first Bell report. The initial investigation into The Star led to many implications for the gambling operator, including a record fine.

Now the company has six months to prove its suitability and prevent permanent license loss. According to plans, The Star will implement remediation measures. The Bell Two inquiry will focus on financial obligations and remediation efforts with hearings held in camera. The results will help the New South Wales Independent Casino Commission (NICC) make a decision regarding the future of the embattled operator.

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The Queensland government has determined that Chow Tai Fook Enterprises (CTFE) is suitable to be associated with Star Entertainment Group’s Queen’s Wharf Brisbane property. The investigation into the matter came in the wake of Star Entertainment’s violations and apparent ties with Asian junket operators.

For context, Star Entertainment was previously found guilty of multiple AML violations and ties with influential Chinese agents. This included the Suncity Group and its now-imprisoned CEO Alvin Chau.

The past ties raised concerns about CTFE, considering that the Hong Kong-based conglomerate owns a 4.99% stake in Star Entertainment and a significant 25% stake in the company’s Queen’s Wharf Brisbane property.

In addition to its stake in Star Entertainment, CTFE also owns properties in the Bahamas and Vietnam. Its chairman, Henry Cheng, also holds a 10% stake in STDM.

In any case, the Queensland government was unable to find anything that would make CTFE unsuitable to be associated with Star Entertainment’s Queensland property.

CTFE Is Suitable, the Attorney-General Determined

Queensland’s attorney-general Yvette D’Ath said that the probe into CTFE’s business has been conducted over the 16 months leading to February 2024. According to her, the investigation was conducted by OLGR with the assistance of a third-party firm.

After what D’Ath called “considerable investigative work” into CTFE’s business and leadership, the investigation concluded that the Hong Kong-based company should be a suitable partner to Star’s property in Brisbane.

The attorney-general’s ultimate decision is that there is insufficient evidence to conclude that CTFE or its relevant associates are unsuitable.

Public statement on the suitability investigation

Queensland’s government added that the investigation was unable to confirm the allegations against CTFE. While the firm had previously dealt with a “person of poor repute,” the investigation could not find evidence to suggest that CTFE knew that the relevant person was a person of poor repute during the period of the association.

The attorney-general also learned that CTFE “lacked candor and fulsomeness” in several dealings with the OLGR. However, the attorney-general determined that this was “based on differences in cultural and organizational expectations” and not a deliberate concealment.

The attorney-general praised CTFE for its collaboration and desire to work with the regulator in the future. However, the attorney-general also warned that potential future failings may cause the Queensland government to reevaluate CTFE’s suitability to be associated with Star Entertainment’s Queens’ Wharf property.

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Facing regulatory action in the Down Under, Star Entertainment has confirmed that another high-ranking executive in the face of chairman David Foster has stepped down after less than a year on the job.

Another One Bids Adieu to Star Entertainment in Time of Need

He adds to the droves of executives who have exited Star Entertainment amid intensifying scrutiny from the country’s gambling regulator, with chief finance officer Christina Katsibouba and chief executive officer Robbie Cooke both turning their resignations in March.

Foster, though, is not immediately exiting the company and will continue to carry out his duties in a temporary capacity. He wants to make the transition towards a new chief executive officer smoother, as Star Entertainment is still on the lookout for its own top person.

However, Foster will only help with the executive responsibilities he took on when he became a chair, and he will be replaced in the chair position by Anne Ward, an independent non-executive director, whose appointment into the new position comes with immediate effect.

Star Entertainment has come under heavy fire from regulators and has been found unfit to hold a license in Sydney in October 2022, as the regulator found the company to have not met all necessary prerequisites to continue operating the property. A second inquiry is now underway, with the heat on Star Entertainment unlikely to let up any time soon.

Star has been waddling through more problems still, especially in light of new previously unseen text messages that showed insiders at the company pushing for the removal of Star Sydney’s special manager, Nicholas Weeks, and the NSW regulator.

The Clouds Gather for Star Entertainment and Executives

That was the event which prompted Cooke’s decision to step down in a formal acceptance of mea culpa. Cooke though has already said that the rapport that Star and the regulator had was a fraught one, and it often felt like a “one-way street.”

“But it was a difficult position for the company because we were taking a contrary position to the manager and some of his views of the company,” Cooke said. The former executive further noted that the messages had come out of context, and they only represented a single exchange between Star insiders, and not the company’s official position. Yet doubt has settled on the regulator’s mind.

The ongoing saga with the second trial is adding insult to injury, and the exodus of C-level executives is undermining the company’s ability to save face at a particularly challenging period of its operations.

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The Star Sydney’s parent company and one of the largest entertainment and gaming groups in Australia, Star Entertainment Group, was involved in a scandal related to alleged breaches of regulations related to anti-money laundering and other issues. As the second inquiry into The Star Sydney loomed, allegations of records falsification emerged earlier this week.

The allegations came after Liquor & Gaming NSW uncovered discrepancies between actual data from The Star Sydney and recorded and submitted gaming interactions by the venue. The probe uncovered that while the casino posted reports about its gambling interactions, CCTV and observations did not match with the reported actions to protect the consumers from excessive gambling.

Nicholas Weeks, the person appointed to the role of manager at The Star Sydney to help guide the venue to compliance, revealed that the Liquor & Gaming NSW inspectors compared recorded player protection data to actual CCTV footage and in-person observations, finding a mismatch between the information. As a result, the casino was accused of “falsification of records,” which occurred not only often but involved a large portion of the employees.

The latest hearing uncovered another major concern regarding The Star Sydney’s “ticket in, cash out”(TICO) machines. An issue with a software update on some of the machines cost the casino AU$3.2 million ($2.1 million) and according to a newly released report, people involved in the activity were reported to the police by the casino for fraud.

More than 40 people exploited the faulty TICO machines at the casino before the error was finally fixed nearly two weeks later. As announced by the Sydney Morning Herald, people who participated in the illicit activity are now facing legal repercussions as they were reported for fraud to the police by The Star Sydney.

The fraudulent activity wasn’t elaborate at all and was in fact caused by a glitch in the TICO machines’ software. Whenever a person placed two tickets into such a machine, they would receive the payout of the two tickets, but one of them would be returned to the customer. Subsequent attempts to redeem the returned ticket were successful and many people started doing so. To make matters worse, the ticket could’ve been redeemed multiple times, which is why the gambling operator lost millions after only 13 days.

The latest report told the story of a woman with the initials T.L.L., who was a recovering gambling addict. After hearing about the TICO glitch at The Star Sydney, she started to withdraw money using the same method. Overall, T.L.L. withdrew AU$57,265 ($36,900) and from that total, she spent everything but AU$5,000 ($3,200).

The TICO machine error happened last summer. Once the casino realized there was an issue, it reported the customers’ activities to the police. As a result, T.L.L. and many others were arrested and charged with fraud.

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The Star Entertainment Group announced that it has formalized the previously announced aspects of the arrangements agreed in principle with the NSW Treasurer, Daniel Mookhey, securing the company’s jobs commitment and cashless trial.

In line with the initial agreement from August 11, 2023, The Star entered into a Jobs Guarantee Agreement with the state of New South Wales and the United Workers Union. As a result, the casino giant agreed to maintain a minimum headcount and certain ratios of full-time, part-time and casual employees at its The Star Sydney casino.

The job guarantee is valid until June 30, 2030, the company added. It also mentioned that the commitment is still subject to certain permitted adjustments in specific circumstances.

As per the newest additions to the Casino Control Act 1992 (NSW), The Star risks penalties if it fails to comply with the jobs commitment it agreed to.

In the meantime, The Star also officialized a formal trial of cashless and carded play at its The Star Sydney property. This trial comes as New South Wales seeks to modernize its gambling industry and prevent gambling-related fraud.

Cashless gaming and carded play will be trialed at NSW casinos from August 2024, allowing the state to see whether they have the intended effect.

The Star Sydney, for example, seeks to allow its guests to play cashless on 51 poker machines and 8 gaming tables within its Sovereign Room.

The Star’s group chief executive officer and managing director, Robbie Cooke, commented on the formalization of the aforementioned agreements labeling the engagement with the NSW Government as very constructive. He added that The Star is happy to have reached these arrangements and be able to provide security to its team in Sydney.

According to Cooke, The Star is bullish on reacquiring NSW’s trust in the wake of the recent regulatory failings.

As we continue to focus on earning back the trust of the Page 2 of 2 community and implementing the reforms required to restore The Star to suitability, we are also committed to the continuation of our role as a valuable contributor to the NSW economy.

Robbie Cooke, group CEO & MD, The Star

Three weeks ago, The Star also introduced new regulations to prevent excessive gambling. Effective as of January 31, the new rules include a mandatory 15-minute break every three hours and a limit of 28 hours of gaming per week. Players will also be unable to play more than 12 hours a day.

The introduction of the new rules followed an AUD 100 million fine in Queensland.

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Star Entertainment Group has six more months to regain its license in New South Wales, lest it risk closing. As reported by The Sydney Morning Herald, the NSW regulator is not content with Star’s ability to do business without supervision.

Star’s business has been having regulatory trouble for some time now. Its casino license was suspended by the NSW Independent Casino Commission (NICC) last year after a probe that uncovered multiple AML and CTF failings.

An independent manager has been appointed to oversee Star’s Sydney property ever since, ensuring that the company implements its remediation plan. However, the NICC does not believe that Star has yet reached a point where its license suspension can be lifted since it does not trust the company to run its casino without supervision.

The NICC spokesperson confirmed that The Star should prove its capability to run its business independently within six months or risk losing its license for real.

This comes just after the NSW and Queensland regulators agreed to extend the terms of the independent managers appointed to oversee Star’s business in two states. Back then, Star also pointed out that this would be the final extension of the manager’s term.

NICC Says Manager Weeks Has Been the Main Driver of Remediation

The NICC was very unhappy at the fact that much of Star’s remediation measures had been spearheaded by independent manager Nicholas Weeks, instead of driven by the casino company’s own decisions.

In addition, the regulator has doubts that the NSW remediation plan would be enough to reinstate Star Entertainment’s license. The NICC also expressed its concerns that the operator’s profit-driven culture might return once the independent manager concludes his term, considering that a significant portion of the senior executive team has remained the same.

However, a Star Sydney spokesperson argued that the company is firmly committed to implementing the remediation plan with the “utmost rigor and discipline.” The Star team said that it is pleased to have had the opportunity to work with manager Weeks for so long and is glad that his term was extended three times.

In any case, Star will be fighting an uphill battle if it is to retain its license. The company must make sure that its business is in order and show initiative when implementing remediation measures.

In other news, Star recently renegotiated its duty rates in NSW.

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New South Wales (NSW) and Queensland regulators appointed special managers to oversee the company’s operations after the scandals surrounding its risk management failures and unethical behaviors. The beleaguered operator has recorded substantial progress in remedying its deficiencies but must still convince authorities it is ready to resume control.

Both Regions Expect Swift Progress

In ASX filings on Friday, Star disclosed the extension of Nicholas Weeks’ term as Manager of The Star Sydney by nearly six months, lasting until 30 June 2024. Similar to NSW, the position of the Special Manager for The Star Gold Coast and Treasury Brisbane casinos in Queensland has been extended by 12 months to 8 December 2024. 

These extensions aim to demonstrate that Star is capable of the necessary remedial actions to regain suitability and resume gaming activities as per its casino license provisions in NSW and Queensland. This change necessitates Star to demonstrate its adherence to the ongoing remediation plans and regain suitability by summer 2024.

Queensland’s decision to extend its special management follows a recent decision by Attorney General Yvette D’Ath to alter the effective date of a 90-day casino license suspension from 1 December 2023 to 31 May 2024. Meanwhile, the NSW Independent Casino Commission (NICC) clarified that its extension will likely mark the final continuation of the Manager’s term, with the option to conclude the tenure earlier if deemed appropriate.

The Operator Faces Growing Pressures

Star Entertainment managing director and CEO Robbie Cooke commented on the recent developments, expressing satisfaction with the Remediation Plan’s approval in Queensland. He stressed the need for unwavering commitment, accountability, and diligence to implement the measures successfully and prove that Star Entertainment can operate without additional supervision.

Despite the operator’s steady progress towards compliance, it faces substantial financial issues. Recent casino duty rate increases threaten to undermine the company’s long road to profitability as its FY 2022/23 results reported an unpleasant full-year loss of $1.6 million. However, all revenue-related policies must wait until the company regains regulatory compliance.

We need to regain the trust and confidence of all our stakeholders and communities and continue to have an unwavering focus on transformation.

Robbie Cooke, Star Entertainment managing director

While Star Entertainment has recorded steady progress with its remedial measures, many industry experts express skepticism about whether the operator can salvage its influence and reputation. Even if the company regains the trust of regulators, it must still struggle with mounting losses and macroeconomic pressures, meaning a return to profitability may take years.

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Star Entertainment Group has completed the sale of its Sheraton Grand Mirage Resort Gold Coast property. Announced earlier this year, the sale saw the Australian casino and hospitality giant sell the property for AUD 192 million (roughly $128 million at the time of the announcement).

The sale of the property came amid regulatory headwinds that saw the company lose public trust and experience deterioration in operating conditions.

Grand Mirage Resort Gold Coast was purchased by the Karedis and Laundy families. Best known for their activity in Australia’s liquor and hospitality sectors, the families will thus be able to expand their portfolio with another major property.

The sale was officially closed on November 3, providing Star Entertainment with almost AUD $60 (approximately $39 million in USD) in net proceeds. For reference, Australian Wattle Development originally purchased the property for AUD 140 million in 2017.

The Group Is Yet to Recover from the Bell Review

The Star’s post-review hurdles are not over yet. In 2021, the NSW Independent Casino Commission appointed Adam Bell SC to review the company’s business in New South Wales. After months of investigation, the Bell review uncovered multiple violations.

The company had to pay hundreds of millions in fines, almost lost its license to conduct business in the state and was forced to implement remediation measures and do better. The fines and the public trust Star lost caused its business to decline.

The silver lining is that the company’s remediation process seems to be going well. At the end of August, the company reported that it has so far implemented 22 of the 30 Bell review recommendations. The struggling casino and hospitality giant reaffirmed its intentions to do follow the recommendations outlined in the review and fix its shortcomings.

In addition, the company was recently able to strike a tax relief deal in NSW. The concession on casino duty rates with the NSW government is expected to help Star get its finances under control.

In other news, Star Entertainment was recently criticized by professional poker players who accused the company of banning players without providing any justification. Considering WPT’s exclusive partnership with Star Entertainment, this caused trouble for some elite poker players.

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The popularity of betting on sports is growing not only in the United States but across Europe too. While more sports fans tap into wagering options on their favorite team, the participation of professional athletes in such activities raises concerns. This is precisely the case of Juventus’ rising star and midfielder, Nicolo Fagioli, who is reportedly under investigation. As announced by Italian media outlets, the famous soccer star is under scrutiny over his alleged participation in illegal betting.

Recently, illegal gambling platforms have been a growing concern across Italy. Manuela Pedrotta, a public prosecutor from the Turin Prosecutor’s Office, has been sounding the alarm about illegal betting for a while. In light of the alleged illegal betting, now, the Turin Prosecutor’s Office is trying to determine whether or not Fagioli engaged in illegal wagering.

According to Italian reports, investigators have been looking into illegal betting providers, cross-referencing nicknames and real names registered with such operators. During that process, reportedly, the name of the famous soccer player was matched, resulting in further scrutiny. Giuseppe Chine, a prosecutor for the Italian Football Federation, is currently overseeing the investigation against Fagioli. Details regarding the alleged illegal betting were first received by him back in August.

Tough Sanction May Be Imposed against the Soccer Player

Under the currently established regulation related to gambling, wagering by professional athletes is not prohibited as long as the platform used is legal and the athlete doesn’t place bets on the sport they participate in. The same rule applies to other sports staff, including managers and coaches.

Article 24 of the Code of Sports Justice prohibits: “the subjects of the federal system, the managers, the partners and the members of the companies belonging to the professional sector to place or accept bets, directly or indirectly, also from the subjects authorized to receive them, which have as their object results relating to official matches organized in the within the FIGC, FIFA and UEFA.”

However, wagering on illegal platforms under the current regulations is considered a crime. If the investigation uncovers that Fagioli indeed participated in wagering on illegal platforms, he may be subject to tough sanctions. Usually, such offenses are punished by fines, however, considering Fagioli’s rank of a professional soccer player, he may be subject to suspension from the sport. If the investigation finds Fagioli guilty of such breaches, he may be subject to a suspension of up to three years.

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French-Canadian online streamer who started his career as a professional Overwatch player, Félix Lengyel, whom you might know as xQc (ex xQcOW), has made an announcement that sparked plenty of heated conversations in the streaming community. 

The Twitch and Kick streamer said he was planning on giving up gambling after he shared a link with his online community, showcasing a massive $5 million win on Stake.com. The latter is a popular online crypto-gambling platform that boasts about offering the best casino and sports betting platforms for Bitcoin and other cryptocurrencies. 

xQc Took It to His Offline Chat to Make the Announcement 

Last September, Twitch announced an important update to its policy aimed at forbidding content creators from streaming from gambling sites featuring roulette, slots, and dice games that are not licensed in the US and other gambling markets with consumer protections in place. 

Before the controversial ban was imposed, xQc had become one of the top “gamba” (gambling) streamers there. After the streaming platform made the crucial announcement, xQc decided to move his gambling content to Kick, Twitch’s direct competitor launched on October 18, 2022. 

The Juicer who had been streaming on Twitch almost on a daily basis therefore resumed his gambling. His debut gambling stream on Kick ended with an impressive win of over $553,000.

Now, xQc has announced he would put an end to his gambling habits online after hitting an impressive $5 million win in an online game. The news follows the streamer’s $1.1 million gambling loss in Las Vegas.

xQc used his offline chat to share a screenshot showcasing the whopping win on Stake.com while also letting his viewers and subscribers know that he had already cashed out the money and that he would not be gambling anymore. 

$1.5 Billion in Wagers

In September 2023, the streamer also openly shared his statistics on the Stake.com platform with his viewers, proving that he had placed no less than 788,877 bets there. Out of these bets, xQc won 76,398. The rest of the bets were losing ones. 

The French-Canadian streamer and online personality also emphasized the fact that his wagers had gone over the $1.5 billion mark.

It remains to be seen if xQc will truly give up gambling, as the streamer has a track record of not always disclosing the full truth with his community.

In the spring of 2022, xQc openly spoke about his gambling addiction on Twitch, explaining that he felt compelled to take unnecessary risks in every game he plays while also claiming that he “can afford to be ill”. 

Last month, Stake.com announced that a cyberattack affected its ETH/BSC hot wallets, leading to $41 million in losses. 

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