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Embattled gaming giant Star Entertainment is facing a fresh scandal, with leaked files revealing it has gutted its problem gambling programs, canvassed misleading casino financiers with an inflated financial forecast, and had to fire a senior executive 10 days after his hiring over contested allegations that he made grossly inappropriate comments.
The internal correspondence detailing Star’s recent operations in NSW and Queensland lays bare serious internal concerns about underfunding of its problem gambling programs, while allowing low-income punters and other high-risk patrons to chalk up burgeoning losses.
The files also expose a plot to mislead the troubled gaming giant’s lenders, and systemic failures that undermined its financial crime prevention responsibilities.
The damning leak comes as eight Star insiders describe an unfolding collapse in culture and governance since last year’s takeover by pokies empire scion Bruce Mathieson jnr and American casino operator Bally’s Corporation.
One Star source said that part of the casino business was at risk of being run like “a pokies venue on steroids”, while another casino source described the firm’s problem gambling approach as “appalling”.
The investigation by this masthead can reveal that top executive Dave Whimpey was sacked 10 days after he was headhunted by his friend Mathieson to run Australia’s newest casino, after two female employees alleged he had used inappropriate language at work.
But Whimpey has told this masthead that the investigation into him was a baseless “witch-hunt” and used to force him out because he held concerns about the company’s operations.
“The fact of the matter is, I raised governance issues in my first 10 days. They’re serious governance issues,” he said of his brief stint at the helm of Star Brisbane.
The confidential sources who also described poor governance at Star spoke on the condition of anonymity because they are not authorised to talk publicly. But many of their concerns are backed up by the leaked internal correspondence and cast doubt over the efforts by the ASX-listed firm to shake off its scandal-ridden recent history and regain its gaming licences in NSW and Queensland.
Mathieson jnr was appointed Star chief executive in December, and his family’s investment arm has poured more than $200 million into the business since its savaging in multiple inquiries led to the loss of its licences as well as purges of its board and management.
Bally’s entered the picture six months earlier, offering Star a complex $300 million bailout package alongside the Mathieson family.
The fresh revelations come at a highly sensitive time for the group, with its annual results due this week. Bally’s separately warned its own investors this week that it may not be able to meet debts unless it sells assets or finds new financing.
Next month, a special monitor appointed by the NSW and Queensland regulators in 2022, former NRL executive Nick Weeks, will rule if Star can have its gaming licences returned – a decision that will not get any easier amid the new revelations.
Ever since it was plunged into scandal following a 2021 investigation by this masthead, Star has been under financial strain. It peaked most recently in April, when Star’s burgeoning debt forced the sale of its 50 per cent stake in the Destination Brisbane Consortium, or DBC – the entity that controls the sprawling Brisbane riverside casino.
