Sat. Jun 29th, 2024

Star Entertainment Group CEO and CFO Resign Amidst Investigations

Avatar photo By admin Jun28,2024

The Star Entertainment Group has declared that its Chief Financial Officer, Christine Catsimatidis, has stepped down from her position.

Robbie Cooke, the Chief Executive Officer and Managing Director of Star Entertainment Group in Australia, has also declared his departure from the company. Christine Catsimatidis has also announced her resignation as CFO.

The Star Entertainment Group has experienced a significant loss of key executives, with the resignations of both the CEO and CFO.

Cooke and the board have determined that a change in leadership is in the best interests of the company, as explained by the Star Entertainment Group. David Foster, the Chairman, will assume the role of Executive Chairman and take on a greater workload while a search for a permanent CEO is underway.

Cooke took over as the head of Star Entertainment Group in November 2022. Before this appointment, he was the fourth CEO in a year for the operator, following Matt Bekier (who stepped down during the investigation of Star Entertainment Group in New South Wales), John O’Neill, and Geoff Hogg.

Before joining Star Entertainment Group, Cooke was the CEO of Tyro Payments. However, he is more well-known for his position as Managing Director and Group CEO of the lottery business Tatts Group from 2013 to 2018. He left shortly after the sale of Tatts Group to Tabcorp was finalized.

Cooke promptly resigned from his leading role at Star Entertainment Group. However, he will continue to provide guidance to the operator for the next six months.

Cooke’s resignation comes as Star Entertainment Group faces a second investigation from the New South Wales Independent Casino Commission (NICC).

As declared last month, Adam Bell will guide the probe into Star Entertainment, scrutinizing how it executed the suggestions of the initial Bell Report. Bell was the head of the first Bell Report.

In September 2022, Star Entertainment was deemed unsuitable to hold a gambling permit in New South Wales, as the preliminary investigation uncovered a string of anti-money laundering and social responsibility oversights.

Cook stated that while the examination is ongoing, his continued position as CEO would be “harmful” to the organization. The investigation will last for fifteen weeks, with the concluding report due on May 31st.

Cook said: “While I find this situation deeply discouraging, I have concluded that my continued role as Group CEO is not in the best interests of the New South Wales Casino Regulatory Authority’s decision on Star Entertainment’s fitness to hold a gambling permit.”

“In these circumstances, a shift in leadership offers the best chance for the business to address the regulatory pressures. I am comforted by the accomplishments our team has made over the past sixteen months.”

“I believe the company is now on the right course. David and the upcoming CEO will have my continued support to finish the key business and vital strategic initiatives in progress.”

Star Entertainment’s chair commended Cook’s “relentless” efforts.

With Foster assuming the new executive role, Anne Ward will become the Chief Independent Director. Foster praised Cook’s influence on the company in recent years.

Upon joining in October of last year, Robbie has been diligently working to stabilize operations. He has been tackling a number of challenges that jeopardized the company’s existence and responding to independent corrective actions mandated by regulatory bodies. He has also been rebuilding the management team and systems. “This includes bringing in more senior risk, compliance, and financial crime executives, as well as initiating our cultural transformation,” Foster stated. Robbie emphasized placing safe, responsible, and ethical gaming at the core of all their endeavors.

Foster also mentioned the second investigation in New South Wales and expressed his belief that the operator will regain the confidence of players.

“We remain dedicated to being deemed suitable to hold casino licenses in New South Wales and Queensland,” Foster declared. “During my time in this role, I am resolute in continuing the positive momentum of the Star Group as we strive to earn the trust of our stakeholders.

“The countless employees of the company deserve stability and security as they collaborate to restore the business to its former glory.”

Kazibuba’s Departure as CFO
In other developments, the Star Group today also announced that Christina Kazibuba will be resigning from her position as Chief Financial Officer. Neil O’Connell, the former CFO of the Tatts Group, will assume the role on an interim basis.

Christina Casibob, who has served as the Chief Financial Officer (CFO) of Star since May 2022, is departing the organization after a nine-year tenure. She initially assumed the position on a temporary basis before being appointed permanently.

Casibob joined Star in April 2015 as the General Manager of Financial Transformation and has held a variety of senior financial roles since then. These include Group Financial Controller and Deputy CFO. She also served as the Gaming Group Executive before becoming CFO nearly two years ago.

Before joining Star, Casibob worked for Salmat, an Australian market enterprise, for nearly five years in a financial capacity. She has also worked for a clothing group and PricewaterhouseCoopers.

Star stated that Casibob is leaving the company to pursue new opportunities.

“Christina assumed the role of CFO following the Bell Inquiry in 2022,” said Foster. “After two demanding years, she has decided that now is the opportune moment to move on.

“She has the gratitude of the Board and me personally for her unwavering efforts as CFO and also as Gaming Group Executive. We extend our best wishes for her future endeavors.”

O’Connell to serve as interim CFO
Casibob’s successor is O’Connell, who possesses extensive experience in the gaming and leisure sectors.

O’Connell most recently served as Global CFO of a corporate travel management company from July 2019 to June 2021. Prior to that, he spent nearly 14 years at Tatts Group, initially as Group General Manager Finance and later as CFO.

Neil Ferguson’s professional journey commenced as a financial director for Delta Group in Australia, followed by a position as finance director for Smorgon Steel Group. Most recently, he served as a strategic counselor for Songtradr and is presently a board member of the Australian Institute of Company Directors.

“Neil is a highly skilled and competent successor,” Foster stated. “He brings a vast amount of experience in both industry and publicly traded companies, and will introduce a fresh viewpoint and leadership to our executive team.

“Star Entertainment operates in a highly regulated setting and is undergoing significant internal change. Neil’s expertise from prior roles will be invaluable.”

Star Entertainment declared a return to profitability in its semi-annual financial results.
The news arrives after Star Entertainment last month disclosed that it had achieved a net profit in the first half of its 2024 fiscal year. However, the company also reported a decrease in group revenue.

The semi-annual results indicated that revenue dropped 14.6% to A$865.7 million (£447.2 million/€521.3 million/$564.6 million). However, Star Entertainment shifted to a net profit of A$9.1 million, compared to a loss of A$1.26 billion in the same period the previous year.

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By admin

This talented writer and mathematician holds a Ph.D. in Applied Mathematics and a Masters in Probability Theory. With a deep understanding of the intricacies of casino games, they have published numerous articles on game theory, probability, and combinatorics in relation to gambling. Their expertise in discrete mathematics and stochastic processes has made them a sought-after consultant for licensed casinos worldwide. Their articles, reviews, and news pieces provide valuable insights into the world of casino gaming.

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