The Star Entertainment Group Ltd (ASX: SGR) share price is on ice as the casino operator’s NSW gaming licence is suspended and a $100 million fine handed down.
The Star share price was put into a trading halt ahead of the release of the NSW Independent Casino Commission’s (NICC) findings this morning. The company said:
The trading halt is necessary as otherwise trading in securities may take place in an uninformed market.
The casino operator’s stock last traded at $2.60.
Let’s take a closer look at what’s going on with the S&P/ASX 200 Index (ASX: XJO) company today.
Star stock halted amid licence suspension and $100m fine
The Star share price remains halted after the NICC revealed it’s taking the company’s casino operating licence away. The licence will be suspended from Friday morning.
It follows a damning enquiry that reportedly heard the casino operator misled regulators, dealt with suspicious junkets, and concealed gambling spending as hotel expenses.
Responding to the Bell Report, Star said it had taken “significant and urgent remedial steps” to retain its licence.
NICC will appoint a manager to allow Star’s Sydney casino to continue operating while the company’s licence is suspended. NICC chief commissioner Philip Crawford said:
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.
Nicholas Weeks has been appointed as the manager until the NICC can determine if the matters identified in the Bell Review can be rectified and the company can achieve suitability.
The regulator has also slapped Star with a $100 million fine.
The company’s stock will remain halted until Wednesday unless it releases an earlier announcement.
The company is also considering the final version of Queensland’s new casino laws. Star was found unsuitable to hold a casino licence in the state last month.
Star Entertainment share price snapshot
The Star share price has underperformed this year, falling 31% since the start of 2022.
It’s also currently 30% lower than it was this time last year.
Meanwhile, the ASX 200 has fallen 12% year to date and 10% over the last 12 months.
The post Star Entertainment share price halted amid $100m fine and casino license suspension appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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