The Australian entertainment conglomerate, Star Entertainment Group, has declared that John O’Neill will assume the role of temporary chief executive chairman, effective immediately.
O’Neill will succeed Matt Bekier, who stepped down from his long-standing position as chief executive officer and managing director last week. O’Neill will take the helm of the company.
Bekier’s departure was a direct consequence of the examination of Star Entertainment Group’s Sydney casino, which commenced last June and raised concerns about the possibility of the venue violating its casino anti-money laundering and counter-terrorism regulations.
Executive search firm Spencer Stuart has initiated the process of finding a new managing director and CEO, but Bekier will offer support during the transition period.
O’Neill will receive an additional $1.5 million Australian dollars (£850,000/$1 million/€1.1 million) annually while serving as executive chairman, bringing his total compensation to $2 million per year during his time in the position.
Star Entertainment Group stated: “While the board believes that the company must maintain stability during the transition to a new managing director and CEO, it also acknowledges the need to expedite board changes.”
Amidst its concentration on day-to-day operations, Star Entertainment affirmed its dedication to its workforce of 8,000 individuals. This statement came after a period of two years marked by COVID-related shutdowns and limitations.
The company asserted its continued full cooperation with the ongoing operational assessment, which was broadened in January to encompass other entities within the group.
Public hearings examining Star Entertainment’s activities have unveiled a series of accusations. These allegations include the claim that Star Entertainment permitted the junket operator Suncity to operate its own chip exchange at Star Sydney. This exchange involved the conversion of chips into cash, a practice deemed in violation of the New South Wales Casino Control Act.
The case further alleges that Star Entertainment’s pronouncements regarding its policies designed to mitigate risks such as money laundering, corruption, bribery, insider trading, and gambling product usage restrictions were misleading or deceptive.
This week, Star Entertainment also encountered a class action lawsuit filed by Slater & Gordon on behalf of investors. These investors are seeking financial redress from the operator for its “misleading or deceptive statements” concerning its adherence to regulatory mandates.
