By Mike Cherney
SYDNEY–Australian casino company Star Entertainment said it will delay its half-year earnings results after regulatory authorities in New South Wales state announced a new inquiry into its operations.
Star was scheduled to release half-year earnings on Feb. 21. It said it needed time to determine if any changes need to be made to its financial report after the NSW Independent Casino Commission announced the inquiry yesterday.
Star said it will provide an updated date for the results in the coming days.
Australia’s casinos have come under scrutiny in recent years over concerns of money laundering and ties to organized crime. Authorities in New South Wales and Queensland previously found that Star wasn’t suitable to hold its casino licenses, hit the company with hefty fines, and appointed government overseers to help run the casinos and give Star time to overhaul its operations.
In New South Wales, where Star runs a big casino in Sydney, authorities extended the term of the so-called independent manager for the second time last year, reflecting concerns that Star wasn’t moving quickly enough to overhaul its operations.
Analysts are worried that the new inquiry in New South Wales could prompt authorities in Queensland to open another inquiry themselves, miring the company in another loop of investigations. The same manager is overseeing Star’s operations in both states.
Star said on Tuesday that it welcomed the inquiry, and that it will provide an objective forum to demonstrate that it is capable of returning to suitability. Star said it will participate in the inquiry in an open, transparent and facilitative manner.
Star’s shares were down nearly 24% in recent trade on Tuesday to 42.75 Australian cents (US$0.28), after being placed in a trading halt on Monday.
Write to Mike Cherney at [email protected]
Read the full article here
