The powerful NSW casino regulator has made a rare public statement, labelling the appointment of new Star Entertainment CEO Steve McCann a ‘defining’ moment.
Only hours after Steve McCann was named as group chief executive of Star, the powerful NSW casino regulator made a rare public announcement that it welcomed the appointment while one of the company’s biggest shareholders describing it as a “defining moment.”
With Star’s future largely dependent on whether the company gets to keep its crucial casino licence in Sydney following the Bell II inquiry, the NSW Independent Casino Commission (NICC) said it was “encouraged” by Mr McCann’s appointment.
“Mr McCann’s experience in navigating the complexities of remediation will serve The Star well as it prepares for the challenges ahead,” a NICC spokesperson said.
Mr McCann served as boss of Crown Resorts for just over a year where he was charged with rebuilding its reputation following a series of damaging public scandals. He left Crown in 2022 just two weeks after the casino giant was taken over by US private equity firm Blackstone.
He also served a 12 year stint as chief executive of property giant Lendlease.
Mr Bell is expected to make his recommendation to the NICC next month. on whether Star is suitable to retain the licence for its casino near Darling Harbour in Sydney.
Crown Resorts and Star Entertainment have faced hefty fines and tougher oversight after being found to have facilitated money laundering and organised crime over a number of years. Regulators in NSW and Victoria have ruled Crown will be allowed to keep both its Sydney and Melbourne casino licences.
But Star Entertainment still faces losing its Sydney casino licence following findings of more regulatory missteps. Mr McCann, who Star claims has an the “capability to work collaboratively with multiple stakeholders and lead meaningful transformational change and cultural renewal,” will be needed to build a more conciliatory relationship with regulators following the fractious regime of former CEO Robbie Cooke.
The Bell II inquiry heard from a succession of former Star executives about a deeply conflicted leadership at war with the regulator, and allegations of fraud, falsification of safe gambling welfare checks and spying. One of Star Entertainment’s biggest shareholders says the appointment of Mr McCann was a “defining moment” for the troubled company.
Wilson Asset Management (WAM) Leaders, which hold about 5 per cent of Star, says the appointment of Mr McCann was the first good news for the company in almost two years.
Star shares have plummeted 50 per cent over the past year amid regulatory missteps.
WAM lead portfolio manager Matthew Haupt said Mr McCann’s negotiation and leadership skills would serve the company well as it seeks to retain its Sydney casino licence following the Bell II inquiry.
Mr Haupt said Mr McCann had been credited with turning around Crown, which had faced similar issues to Star. ‘He likes a hard gig,” said Mr Haupt, who added the $10m salary package agreed with Mr McCann was justified.
“He knows how to negotiate and deal with regulators across the board. He turned Crown around and will do the same thing with Star. They will get the green light to keep their Sydney licence and it will be onward and upwards.”
Mr Haupt said Star’s share price did not reflect the announcement or the value of its extensive property assets. “The hotels alone are worth $2bn but the entire company’s market cap is only $1.4bn,” he said.
Mr Haupt said Mr McCann was a known quantity with regulators, having worked with NICC chairman Philip Crawford and special manager Nicholas Weeks on the Crown turnaround.
Hunter Green IB director Charlie Green said Mr McCann was an experienced executive across both the gaming and property sectors.
“Lendlease was a tough gig and he should go well at the Star after settling down Crown,” said Mr Green.
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