Star Entertainment Group Loses CEO and CFO Amidst Regulatory Investigations

The Star Entertainment Group has declared that Chief Financial Officer Christine Catsimatidis has stepped down from her position.

Robbie Cooke will no longer hold the roles of Chief Executive Officer and Managing Director of Star Entertainment Group in Australia, and Christine Catsimatidis will also depart as CFO.

Star Entertainment Group experiences a loss of key executives, with the CEO and CFO resigning.
Cooke and the board have decided that a change in leadership is beneficial for the company. Star Entertainment Group stated. David Foster, the Chairman, will assume the position of Executive Chairman while a permanent CEO is sought.

Cooke assumed the role of CEO of Star Entertainment Group in November 2022. This marked the operator’s fourth CEO in a single year, following Matt Bekier (who stepped down during the New South Wales inquiry into Star Entertainment Group), John O’Neill, and Geoff Hogg.

Before joining Star Entertainment Group, Cooke served as CEO of Tyro Payments. However, he is more widely recognized for his time as Managing Director and Group CEO of the lottery business Tatts Group from 2013 to 2018. He left shortly after the sale of Tatts Group to Tabcorp was finalized.

Cooke promptly resigned from his top position at Star Entertainment Group. However, he will continue to offer guidance to the operator for the next six months.

Cooke departs amidst a New South Wales investigation.
This news comes as Star Entertainment Group faces a second investigation by the New South Wales Independent Casino Commission (NICC).

As declared last month, Adam Bell will spearhead the inquiry into how Star Entertainment carried out the suggestions of the initial Bell Report, which he directed.

Star Entertainment was deemed unfit to hold a gambling permit in New South Wales in September 2022, following an initial examination that uncovered a series of anti-money laundering and social responsibility shortcomings.

Cook stated that remaining as CEO during the inquiry would be “harmful” to its advancement. The inquiry will span 15 weeks, with the final report expected on May 31.

“Although I am deeply disheartened by this result, I have concluded that my continued position as Group CEO is not in the best interests of the New South Wales Casino Regulatory Authority’s decision regarding Star Entertainment’s fitness to possess a casino license,” Cook stated.

“Under these circumstances, a shift in leadership presents the best chance for the company to address the regulatory pressures. I am encouraged by the accomplishments of our team over the past 16 months.”

“I am confident that the company is now on the right path. David and the next CEO will have my ongoing support to complete the key business and crucial strategic initiatives in progress.”

Star Entertainment’s chair commended Cook’s “relentless efforts.”

Anne Ward will assume the role of Chief Independent Director as Foster takes on the new executive position. Foster lauded Cook’s influence on the business in recent years.

Upon his arrival in October of last year, Robbie has been diligently working to stabilize operations. He’s been tackling a number of issues that jeopardized the company’s existence and responding to separate corrective measures demanded by regulatory bodies. He’s also been rebuilding the management team and systems.

This has involved bringing in more senior executives with expertise in risk, compliance, and financial crime, as well as initiating a cultural shift. Robbie has expressed his commitment to making safe, responsible, and ethical gaming the cornerstone of their operations.

Foster also expressed confidence that the company will regain the trust of its patrons.

“We are unwavering in our commitment to being deemed suitable to hold casino licenses in New South Wales and Queensland,” Foster stated. “In assuming this leadership role, I am resolute in my determination to maintain the positive progress at Star Entertainment as we strive to regain the confidence of our stakeholders.

“The thousands of employees of the company deserve stability and security, and they are all collaborating to restore the business to its former glory.”

The company’s Chief Financial Officer, Cassie Bubba, is also preparing to leave.

In other developments, Star Entertainment announced today that Christina Cassie Bubba will be stepping down from her position as CFO. Neil O’Connell, former CFO of Tatts Group, will assume the role on an interim basis.

Christina Cassibuppa, who assumed the position of Chief Financial Officer in May 2022, initially on a temporary basis before transitioning to the permanent role, will be departing Star Entertainment Group, concluding her nine-year association with the operator.

Cassibuppa joined Star Entertainment Group in April 2015 as General Manager of Financial Transformation, and has since held a variety of senior finance positions. These included Group Finance Director and Deputy CFO. She also served as a Gaming Group Executive before assuming the CFO role.

Before joining Star Entertainment Group, Cassibuppa worked for nearly five years at Australian market enterprise Salmat, again in finance positions. She has also worked at Apparal Group and PricewaterhouseCoopers.

Star Entertainment Group stated that Cassibuppa will be leaving the company to pursue other opportunities.

“Christina stepped into the CFO role following the Bell Inquiry in 2022,” Foster remarked. “After two challenging years, she believes now is the appropriate time to move on.

“She has the gratitude of the board and myself for her tireless efforts during her time as CFO and Gaming Group Executive. We wish her all the best in her future endeavors.”

O’Connell appointed interim CFO
Cassibuppa’s successor is O’Connell, who possesses extensive experience in the gaming and leisure sector.

O’Connell most recently served as Global CFO of Corporate Travel Management, a role he held from July 2019 to June 2021. Prior to that, he spent nearly 14 years at Tatts Group, initially as Group General Manager Finance before becoming CFO.

Neil Ferguson previously held the position of Chief Financial Officer at Delta Group Australia and Smorgon Steel Group. In recent times, he has served as a strategic consultant for Songtradr and is presently a board member of the Australian Financial Directors Council.

“Neil is a seasoned and highly competent individual,” Foster stated. “He brings industry and publicly listed company experience that will offer fresh viewpoints and leadership to our executive team.

“Star Entertainment operates in a highly regulated setting and is undergoing substantial internal change. Neil’s past experience will be extremely valuable.”

Star Entertainment Achieves Profitability in the First Half of the Fiscal Year
This news follows Star Entertainment’s recent announcement that they had returned to net profit in the initial six months of their fiscal year 2024. However, the company also reported a decrease in overall revenue.

Revenue for the first half of the fiscal year declined by 14.6% to A$865.7 million (£447.2 million/€521.3 million/$564.6 million). Nevertheless, Star Entertainment shifted to a net profit of A$9.1 million, in contrast to a loss of A$1.26 billion in the preceding year.

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