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The chief executive of one of The Star’s three casino precincts has quit following four days of hearings into the group’s culture which have unearthed allegations about the way business is still being conducted at the struggling casino group.
Jessica Mellor, the boss of The Star Gold Coast, tendered her resignation to the board late on Thursday. She was appointed to the position six months ago and is set to step down on May 24. The precinct’s general manager of gaming, Ian Brown, will be her interim replacement.
Jessica Mellor was appointed CEO of The Star Gold Coast six months ago. She quit on Thursday, Credit: Paul Harris
The broader company is in the midst of appearing before its second inquiry in NSW following concerns from the state casino regulator, which is due to determine in a matter of months whether Star should keep operating its Pyrmont casino. Adam Bell, SC, has been engaged for a second time in 18 months to conduct the probe into The Star.
Mellor was one of a number of executives who was promoted after holding a senior leadership position in 2022, when Adam Bell found the group had committed extensive anti-money laundering and counterterrorism breaches. The NSW Independent Casino Commission has made it clear the retention and promotion of executives since the first inquiry is one of its main concerns about The Star’s culture. Most of these executives have quit since the second inquiry was announced last month.
In the latest bout of hearings into the business the company has been accused of falsifying mandatory welfare checks on poker machine players, failing to stop $3.2 million in cash going to gamblers who detected a fault in a gaming machine during a six-week period, and forming a plot to then misconstrue that loss in the company’s half-yearly results in February.
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Former chief executive officer Robbie Cooke – who quit last month – has also been accused of failing to be transparent about the group’s debt exposure and earnings position with the broader executive team. Meanwhile, executive chair David Foster has been accused of proposing a class action against the NSW casino regulator and special manager Nicholas Weeks.
But not all have been put off by the allegations. Pubs baron Bruce Mathieson has increased his stake in Star Entertainment Group for a second time in a couple of months.
Mathieson’s family company now holds almost 10 per cent of the group after spending $18.46 million to purchase more than 40 million extra shares over the past week. The Star said on Thursday it may prohibit anyone from owning more than 10 per cent of the group under its constitution and regulations in Queensland and NSW.
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