The New South Wales gaming regulator has warned Australian casino giant Star Entertainment to “quickly” find a new chief for its Sydney operation after Scott Wharton quit to take another job only eight months after being appointed.
Wharton will remain in the position until April 28, and will join employee management services corporation Smartgroup in July as CEO and managing director. During his time with The Star, he oversaw the company’s renewal program, targeting governance and culture.
Wharton’s departure comes at a crucial time for the gaming group, with the new state Labor government receiving briefings about whether it would keep in place a tax increase on casinos put in place by the Coalition.
Chris Minns.
As reported by Australian Financial Review, Premier Chris Minns said on Monday that Labor will be having discussions with the Treasury in the coming days as “we get a full picture of the revenue side of the budget and future policy measures.” Star has warned the tax increase – applied to poker machines – could have a significant impact on earnings.
The Star is also focused on reforming its governance arrangements, and Wharton was installed as its head of transformation last year, as the company attempts to reset after an independent inquiry found major anti-money laundering compliance issues at its Sydney casino.
Philip Crawford, chief commissioner of the Independent Casino Commission, said there is “a significant amount” of work to be done. “The commission notes the change in the leadership of The Star’s Sydney casino, which it hopes will enhance The Star’s commitment to this task,” Crawford said.
The chief commissioner also stated that it is necessary that the transition to a new CEO is carried “out smoothly and quickly,” maintaining the momentum needed to stay on track.
Philip Crawford.
Wharton’s resignation came as 11 former Star officials, in filings with the Federal Court, denied claims made by the corporate watchdog that they breached their duties to shareholders by failing to prevent money launderers from washing dirty cash through the company’s casinos.
Back in December, the Australian Securities and Investments Commission accused former chairmen Ben Heap and John O’Neil, as well as former CEO Matthias Bekier of breaching their duty, of breaching their duty. ASIC also brought its case against members of the board who served between 2017 and 2019.
At the time, ASIC deputy chair Sarah Court alleged that the board members violated their duties by approving the expansion of Star’s relationships with high rollers with criminal links, and failing to make further inquiries of management when information about money laundering risks arose.
Star’s Sydney license was suspended by the NSW casino regulator, and Nick Weeks was appointed as special monitor to run the casino until January 2024. The Queensland government followed the NSW commission’s lead following its own state inquiry run by Robert Gotterson, SC, but chose not to suspend Star’s Brisbane or Gold Coast casino licenses.
Star has been allowed to keep its three lucrative licenses, so long as it proves its capabilities to run its casinos within the law. On Monday, the company said Nicola Burke will be appointed new head of the transformation role, and Star chief executive Robbie Cooke said a new Sydney CEO would be appointed “shortly.”
Original article: https://www.yogonet.com/international/news/2023/04/03/66703-nsw-regulator-urges-star-to-34quickly-34-find-replacement-for-sydney-casino-ceo-scott-wharton
