Place my bets, Star Entertainment Group Ltd - ASX: SGR, page-91

I’ve just read the AFR article. I’m a bit puzzled as to what the fuss is about. Ok, the Chief Legal Officer has resigned after 6 months. That’s odd. Likely she was uncomfortable about something. But we can only speculate as to what it is. It may be as simple as a personality clash or something.

We are also told that regulators are concerned that there is no CEO in place at Star Sydney (presumably that will be rectified) and they are also concerned that some executives still in place were there when money laundering was rife and anti-terrorism laws were breached.

None of this sounds like it would lead to license cancellation. It sounds more like “shots across the bow” to ensure SGR maintains its new vigilance and rigor.

I believe Robbie Cook when he says he is determined that we will comply with regulatory requirements and demonstrate worthiness to retain the casino license. I would be really, really surprised if SGR fails to satisfy those requirements and so loses its license. That would be absolutely culpable by SGR, given the time they are being given to get things sorted. I just don’t see them being that willfully incompetent.

What I DO see, in time, is that a new legal officer will be appointed, a new CEO at Star Sydney in place, and the license eventually renewed. We may then look back on this particular day and think “why all the fuss over little real news?”. There’s been no news whatsoever regarding our financials today (assuming we do keep the license). That’s what ultimately matters. I think the AFR item is just “background noise” of little real consequence. Folks seem to be selling out in response to it. Folks should consider selling shares in any company when financials are impacted by news, not on gossip or regulatory warnings that are able to be addressed and surely will be. I think this too will pass.