Steve McCann has officially assumed the position of Managing Director and CEO of The Star Entertainment Group, following regulatory approval. Starting on 2 December 2024, McCann’s leadership marks a critical turning point for the Australian gaming operator. His appointment comes after Neale O’Connell, the Acting Group CEO, stepped down to continue as Interim Group CFO until a permanent CFO is appointed.
McCann, previously pivotal in Crown Resorts’ remediation before its acquisition by Blackstone, is now tasked with steering The Star through turbulent waters. Although his official tenure begins now, he has already been instrumental in key initiatives, including recent capital-raising efforts and securing a new AUD100 million (€61.7 million) debt facility, with potential access to an additional AUD100 million contingents on further milestones.
Liquidity and financial stability remain key focus
The Star faces financial challenges, primarily attributed to compliance failures identified in the Bell Two inquiry. These failures have resulted in a AUD15 million (€9.3 million) fine, a potential casino licence suspension, and a sharp decline in the company’s stock value.
At the Annual General Meeting, Chairman Anne Ward stressed that liquidity and overall financial viability remain the Board’s and management’s top priorities. Although a revised lending package has eased immediate pressures, Ward emphasised that more work is needed to stabilise operations and progress the company’s remediation programme throughout 2025.
The company’s new AUD200 million (€123.5 million) debt facility aims to provide much-needed financial breathing room. However, the broader recovery effort hinges on addressing compliance issues and restoring market confidence, as the company navigates regulatory scrutiny and declining revenues.
McCann outlined a comprehensive remediation plan to restore The Star’s regulatory and social licences. The plan includes 14 workstreams with specific milestones focused on cultural reform, safer gambling practices, enhanced compliance, financial crime prevention, governance improvements, and technology upgrades.
Approved by Queensland regulators, the plan aims for meaningful progress by March 2025. McCann highlighted the company’s dedication to resetting its culture and improving relationships with regulators, though he acknowledged the elevated costs of transformation and external advisory services.
A challenging road ahead
Despite some progress, The Star’s financial performance continues to deteriorate. Trading of its shares on the Australian Stock Exchange resumed in September after a temporary suspension, but the company has since faced further losses at the EBITDA level.
McCann’s immediate priority is to deliver on the remediation plan while rebuilding trust with regulators and stakeholders. His leadership will be critical in navigating the complexities of compliance, operational restructuring, and financial recovery in the coming months.
Subscribe to SiGMA’s Top 10 News countdown and SiGMA’s Weekly Newsletter to stay up to date with all the latest iGaming News, and benefit from Subscriber-Only Offers.
