Star Entertainment Group Ltd shares have halted trading today after the much loved (and sometimes hated) casino operator has had its gaming licence taken away.
The NSW Independent Casino Commission (NICC) revealed it’s taking the company’s casino operating licence away from Friday morning. This came after the enquiry found some damning results such as that Star reportedly misled regulators, dealt with suspicious junkets, and concealed gambling spending as hotel expenses. On top of the suspension, the company was also ordered to pay a pecuniary penalty of $100 million.
In response to this, The Star Entertainment Group put out a trading halt on their shares before trading this morning and put out a corresponding announcement that didn’t see the gaming operator seeming too phased. The company said:
“The trading halt is necessary as otherwise trading in securities may take place in an uninformed market.”
Conversely, the NICC chief commissioner Philip Crawford confidently stated:
“If it were not for The Star’s change in attitude and our belief that it is in the public interest to protect the thousands of jobs at risk, there might have been a different outcome.
I’m hopeful incoming CEO Robbie Cooke can apply his experience and leadership skills to guide the company towards suitability under the direction of the manager.”
NICC has appointed a gentleman by the name of Nicholas Weeks as the manager until the NICC can determine if the matters identified in the Bell Review can be fixed.
Surprisingly enough, Star Entertainment released an announcement regarding the details of the disciplinary action earlier this afternoon and the company’s shares ended the day 1.5% to $2.64 a share.