Executive departures deepen Star Entertainment’s legal woes
The chief legal officer of Star Entertainment abruptly resigned in the weeks before the NSW regulator publicly warned that the ASX-listed gaming group could lose its license to operate a casino in Sydney.
Betty Ivanoff, a former group counsel at Crown Resorts and Coca-Cola Amatil, is departing the business after about six months in the role, according to people familiar with the exit who spoke anonymously. She is the second senior executive to depart in a matter of months – David Brenac, group executive, asset management and development, left in August.
A Star spokesman declined to comment. Ms Ivanoff leaves in March.
Betty Ivanoff, Star’s chief legal officer, quietly left the business last month. Anna Kucera
The departures have occurred at a challenging time for Star, which in the last financial year has faced a fine levied by financial crimes watchdog AUSTRAC, four class actions and two revoked state casino licences. Star’s challenges ultimately culminated in a $2.2 billion non-cash impairment of The Star Sydney, The Star Gold Coast and Treasury Brisbane.
Star launched a capital raising in February but then was forced to raise more money in September to try and eliminate its hefty debt load. The extra money and a tax reprieve from the NSW government also allowed the company to avoid selling or closing its flagship Sydney casino.
Challenges at the company were exacerbated again last week when the Independent Casino Commission warned it was not satisfied with Star’s ability to run its flagship casino in Sydney without supervision.
One of commission’s key concerns, according to people familiar with the matter, is that most senior executives at Star arrived in their positions before an independent inquiry exposed extensive anti-money laundering and counterterrorism failings, which could undermine remediation efforts. Another concern is the absence of a chief executive for Star Sydney.
Mr Brenac was an employee before the major inquiry, but Ms Ivanoff joined after the arrival of Star new chief executive, Robbie Cooke.
Star Sydney’s licence was suspended in October last year after an independent inquiry exposed extensive anti-money laundering and counterterrorism failings. The state-appointed general manager, Nick Weeks, was originally expected to stay at The Star for 90 days with the option to extend at the regulator’s discretion. His term expires next June.
“The NICC is not satisfied The Star has reached a point where the licence suspension can be lifted,” a spokesperson said. “If they can’t prove they are capable of operating with a conditional license over the next six months, the manager will be retired, and the doors will close.”
The ASX-listed group said in November that regulators in NSW and Queensland – where it operates casinos in Brisbane and the Gold Coast – had extended the terms of their respective independent managers to give the business more time to undertake the necessary remediation steps.
Star’s share price has fallen more than 75 per cent since Mr Cooke was appointed in October last year. Shares closed at 52¢ on Friday.
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