Troubled casino operator Star Entertainment has unveiled a new Gold Coast chief executive as it battles to keep its new Brisbane project afloat.
Mark Mackay will return to The Star, taking over as CEO of its Gold Coast casino after a seven-year stint at rival Crown.
The Star made an announcement to the ASX on Monday, confirming Mr Mackay would replace Jessica Mellor who resigned in May.
The news comes after The Star revealed the sale of its Treasury Casino property in Brisbane for $67.5 million to Griffith University.
The Star said it would pocket $60.7 million from the historic site sale as it battles cost blowouts at its new Queen’s Wharf project.
The Star reportedly needs $300 million in short-term funding to continue operating the $3.6 billion casino precinct in Brisbane’s CBD which opened on August 29, barely a fortnight ago.
The state government has begun talks with The Star, with tax payment deferrals being discussed.
The Treasury Casino – which opened in 1995 – closed in late August to make way for the new precinct’s opening.
The new Queen’s Wharf casino and The Star Gold Coast are operating under a state government-approved remediation plan and the oversight of a special manager.
“Mark’s appointment and relevant experience further strengthens our leadership team as we focus on implementing the necessary reforms at The Star,” The Star chair Anne Ward said of Mr Mackay’s appointment in a statement to ASX.
Mr Mackay will start his new role on Tuesday, with his appointment subject to regulatory approvals.
He previously had an 11 year-stint with The Star, becoming the Gold Coast casino’s chief operating officer before joining Crown in 2017.
The state government fined The Star $100 million in 2022 after an independent review found its Queensland casinos had “major failings” in anti-money laundering attempts and responsible gaming efforts.
The state government has delayed a threatened suspension of The Star’s Queensland casino licences until December.
The Star failed to lodge its full-year financial report on August 30, triggering the suspension of its shares from ASX trade.
The Star also has a casino in Sydney, with CEO Steve McCann lobbying the NSW government for financial relief.
NSW Premier Chris Minns said on Monday that pressures on the state budget meant there could be no repeat of a previous deal with The Star, under which a planned poker-machine tax hike was deferred in return for a transitional agreement with a guarantee for 3000 jobs.
“We can’t be confident that whatever we came to the table with wouldn’t be used for the benefit of the Gold Coast or the Brisbane casinos,” he said.
“As a result of that, we can’t come with any further financial help.”
But Mr Minns added there was a long way to go while The Star attempted to sort out its financial woes and it would be wrong to assume jobs at its Sydney casino would be lost.
