The Star Entertainment Group Ltd (ASX: SGR) share price is in the red on news that the company’s CEO is stepping down after damning evidence of the casino’s conduct was tabled as part of an ongoing inquiry.
The boss’ resignation follows last week’s hearings conducted by the Independent Liquor and Gaming Authority of New South Wales. The regulator is working to decide if Star is fit to hold its Sydney casino licence.
At the time of writing, the Star share price is $3.21, 0.62% lower than its previous close.
Let’s take a closer look at what’s weighing on the casino operator’s stock today.
Inquiry into Star’s Sydney licence sees CEO step down
The Star share price is slipping today after the company announced its long-term CEO and managing director Matt Bekier has handed in his resignation and stepped down from its board.
According to the company, Bekier said “the right thing to do” was for him to take responsibility for the company’s “processes, policies, people, and culture” amid the ongoing review.
Last week, the NSW gaming regulator’s inquiry heard Bekier express hostility when presented with a report by KPMG into weaknesses in the company’s anti-money laundering processes.
According to transcripts, the company’s former chief risk officer Paul McWilliams told the inquiry Bekier “was in … a sulk” when presented with the report.
McWilliams also said the CEO appeared to believe KPMG didn’t know what they were talking about.
Additionally, the Australian Financial Review (AFR) reported the inquiry heard Star allowed SunCity to continue gambling in a secret room despite Bekier publicly claiming it had ended its relationship with the junket.
The publication also stated the company was said to have deliberately misled regulators about the private room’s existence.
Those findings follow previously heard evidence claiming Star covered up $900 million of Chinese debit gambling transactions.
As The Motley Fool Australia’s Zach Bristow reported, the company alledgedly disguised the gambling spend as hotel expenses.
Bekier will step down from the Star board immediately but will retain the top job for the time being.
For now, he will work with the board towards an orderly transition of the CEO and managing director role.
Star Entertainment share price snapshot
Perhaps unsurprisingly, the Star share price has been suffering through 2022 so far.
Right now, it is 15.3% lower than it was at the start of this year. Of that slip, 4.1% occurred over the last month.
The company’s stock has also fallen 15.9% since this time last year.
The post Star Entertainment (ASX:SGR) share price slips after CEO steps down 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 Bruce Jackson.
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