Australian casino operator, Star Entertainment Group announced recently that its CEO, Matt Bekier had handed in his resignation as an investigation into alleged transgressions of anti-money laundering and counter-terrorism laws at its properties gains momentum.
The public investigation has harmed the company’s fortunes, with its shares down a further 1.9% from an initial tumble of over 12% in 2022 alone.
An official statement revealed that Bekier had spoken to the board, saying that as the company’s managing director and CEO, he is ultimately “accountable for the effectiveness and adequacy of the company’s processes, policies, people and culture.” He added that hi taking responsibility was the correct thing to do.
Bekier’s immediate resignation came in the wake of testimony from the public hearings arranged by the official inquest that is particularly focused on the Star Sydney hotel and casino.
Dissecting the Truth
The Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated its probe in June 2021 after hearing that the casino was ignoring customer due diligence and breaking several laws.
The local media caught wind of a confidential review that condemned Star for failing to address fraud and money laundering at its two resorts.
Analysts from financial services firm, Jeffries, addressed the issue in a note, stating,
“If Crown Resorts is a guide, we have a long way to go which could involve further management/board change and the now, very real possibility of Star losing its licence to operate, which could conceivably dash plans for an additional 1,000 Electronic Gaming Machines in Sydney,”
The recently concluded inquiry into rival casino operator, Crown Resorts found the company unfit to hold a gambling licence in Western Australia but allowed the operator to retain its existing license.
Bekier, who previously served as the CFO of Star, has agreed to work alongside the board to ensure a smooth handing over of his executive responsibilities. The company advised that his precise departure date has not yet been decided.
