Matt Bekier, the Managing Director and Chief Executive Officer of Star Entertainment Group, has announced that he is leaving the company’s board effective immediately, following allegations of misconduct against the casino operator.
Star Entertainment Group, one of the largest casino operators in Australia, saw its share price drop to the lowest level in seventeen months after an inquiry revealed evidence of misconduct at the company’s Sydney casino.
The information that was revealed during a public hearing sent the stock tumbling seven percent to 3.215 Australian dollars, the lowest figure since October 2020. The decrease shrunk the company’s market value to 3 billion Australian dollars.
Star Entertainment Group is currently under investigation in Sydney as the local regulator is trying to determine whether the company is still suitable to hold a license to run its flagship casino in the city.
The public hearings revealed that the operator disguised gambling transactions on Chinese debit cards as hotel expenses. Those transactions amounted to a total of 900 million Australian dollars, according to the deposition made on by Paulina Dudek, Assistant Group Treasurer at Star Entertainment.
The inquiry was launched by the New South Wales Independent Liquor & Gaming Authority in September 2021 after concerns were raised about the operator’s dealings with junkets and failings regarding money laundering prevention measures.