The Star shuts down electronic gaming machines, table games in its three casinos amid "performance issues"

2024-07-15

Australia

Reading time 1:33 min

Star Entertainment Group has switched off all electronic gaming machines and electronic table games in its three casinos as some of the systems were disrupted while being upgraded to prepare for the introduction of cashless gaming. Brisbane’s Treasury Casino, The Star Gold Coast, and The Star Sydney are the venues affected.

In an announcement to the ASX on Monday, the company said the issues, identified in post-upgrade testing, "resulted in the decision to switch off all electronic gaming machines and electronic table games in each of [its] three properties" from 10 pm on July 13.

Cashless gaming was a key recommendation of an inquiry by the NSW Crime Commission into money laundering in pubs and clubs which found billions of dollars in dirty money was being plowed through the state's poker machines.

As per a company statement, The Star's machines and electronic tables will remain switched off until the issue is resolved. However, its venues will remain open, with table games, restaurants, bars, and entertainment available.

"The decision was taken by The Star to ensure compliance with relevant regulations, and to maintain the company’s commitment to safer gambling procedures," The Star said, as reported by The Sydney Morning Herald.

Shares in the company fell 1.6% to 50¢ a share at about 1.30 pm AEST, ending the day down 1% at 51¢.

The news comes as The Star issued a negative trading update last month, following the news that high rollers continue to avoid its three casinos and the costs associated with its regulatory compliance eat into its earnings.


Steve McCann

Days later, the company announced that it had hired former Crown Resorts boss Steve McCann to lead the casino operator from July 8 following weeks of negotiations. McCann, who is now just a week into his role, was tasked with finding a way forward for The Star, including completing Star Sydney’s transition to cashless gaming by August.

The Star has been subject to several probes and is awaiting a final report commissioned by the NSW Independent Casino Commission into whether its Pyrmont premises deserve its casino license. The findings are due to be made public on July 31.