Robbie Cooke, the CEO of Star Entertainment Group, has officially resigned from his position. This decision came after he concluded that the company’s flagship Pyrmont casino would unlikely retain its valuable casino license from the NSW regulator under his leadership. The announcement, made late on Friday, also included the resignation of Chief Financial Officer Christina Katsibouba. An internal staff memo revealed that David Forster, the chair, would temporarily assume an executive chair role while the company initiates a search for a new CEO.
“The decision for Cooke to step down, supported by the board, is believed to be in the best interests of the company. It was determined that the company’s prospects of securing a license in NSW would be better served with new leadership,” stated the group in a disclosure to the ASX after the market closed.
Cooke, who joined the group on the day its casino license was revoked in NSW in October 2022, took on the role of CEO after leading Tyro Payments. He pledged a significant cultural transformation and strategic redirection. However, his tenure encountered numerous challenges, including complex tax proposals in NSW, complications with the Queens Wharf joint venture in Queensland, and a prolonged campaign for the renewal of its three premises’ casino licenses.
In a communication seen by this publication, Cooke informed staff of his decision to resign with “considerable reluctance and a heavy heart.” He expressed his belief that Philip Crawford, the head of the NSW Independent Casino Commission, had reservations about his choice to retain several existing executives on the senior leadership team. Last month, the NSW regulator informed this publication that it would initiate a second inquiry into The Star, as it remained unsatisfied with the extent of cultural change to justify restoring its state casino license.
“In my view, these individuals were not part of The Star’s executive committee when the misconduct highlighted in the initial Bell inquiry occurred. I am unaware of any grounds to suggest their involvement as wrongdoers. Additionally, it appears that the Chief Commissioner deemed my pace of implementing reforms and changes at The Star insufficient, a perspective with which I respectfully and fundamentally disagree,” Cooke stated in the communication.
Despite the announcement of the second inquiry, Katsibouba, company secretary Jennie Yuen, head of customer George Hughes, and chief of staff Peter Jenkins retained their senior leadership roles at The Star. Furthermore, the company elevated Jessica Mellor to lead the Gold Coast casino. Mellor previously served as the chief operating officer of the broader business.
However, as of Friday, only Yuen and Mellor remain in their respective positions. Hughes resigned two weeks ago, and Jenkins also stepped down on Friday after serving a decade at the group.
Anne Ward will undertake the role of lead independent director while Forster assumes the executive position. Cooke will continue as a consultant to the company for the next six months to facilitate a smooth transition.
The Star underwent a comprehensive overhaul of its board and leadership following damning investigations into its operations in NSW and Queensland. Last month, the group appointed new chief executives Daniel Finch and Janelle Campbell to lead its Brisbane and Sydney premises, respectively. Neale O’Connell will join as interim group chief financial officer starting next week. O’Connell brings extensive experience, having served as the global chief financial officer of Corporate Travel Management and Tatts, where he oversaw the merger between Tatts and Tabcorp.
“Katsibouba has chosen to depart to pursue other opportunities. During her tenure, she played a crucial role in implementing the company’s capital structure initiatives throughout 2023,” the group informed the ASX.
The company’s market value has halved since the initial inquiry in 2022, led by barrister Adam Bell, SC, which concluded that The Star was unfit to hold its NSW casino license due to extensive compliance failures leading to money laundering, criminal infiltration, and significant fraud.
Bell will assess, in the second inquiry, the progress made by The Star since issuing his original 900-page report. Revoking the casino’s license is one of five options the commission will consider upon receiving the findings of the 15-week inquiry.
“We do not take this decision lightly, but I remain unconvinced that they have adequately addressed the cultural reforms outlined in Bell’s initial report,” remarked Crawford upon announcing the second inquiry. “Cultural change is a gradual process, but it’s essential to begin on the right path; otherwise, you risk perpetuating a toxic culture.”
