Due to the legal and economic challenges that have been buffeting the struggling gaming firm, The Star has decided to lay off the equivalent of 500 full-time staff, freeze pay, and reevaluate the future of its flagship Sydney casino.
On Wednesday, the gaming corporation stated that, in addition to the cost-cutting drive, it will be collaborating with Barrenjoey Capital Partners to perform a strategic assessment of The Star Sydney, Australia’s second-largest casino.
The Star has been assessing “strategic alternatives available to enhance value for the group’s shareholders,” though it has not specified what it hopes to accomplish.
Star to Cut Jobs
The firm, which is short on funds, is moving on with the sale of the Sheraton Grand Mirage Gold Coast, and preliminary offers are likely any day now.
According to online slot machines experts, it also intends to negotiate payment schemes for existing and future fines with the New South Wales and Queensland governments, as well as with regulator Austrac, for prior money-laundering offenses.
Star has put aside $150m for possible fines from Austrac, the Australian Transaction Reports and Analysis Centre, which supervises compliance with money-laundering rules after the casino business was hit with $100m fines in both Queensland and NSW last year.