No more bets after Star Entertainment Group machine upgrade causes casino-wide glitch
Embattled casino operator Star Entertainment Group’s electronic pokies and tabletop games have been out of action since Friday night after a planned upgrade to ready machines for cashless gambling caused a glitch.
Star shares were off 2 per cent at 12.30pm as the market learnt the technical issue was impacting all three of its gambling precincts in Brisbane, the Gold Coast and Sydney.
In a statement to the ASX on Monday, Star said it had been forced to switch off all electronic gaming machines and electronic table games after an upgrade to get them ready for cashless gambling started “disrupting” systems.
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By continuing you agree to our Terms and Privacy Policy.“System performance issues identified in post-upgrade testing ... resulted in the decision to switch off all electronic gaming machines and electronic table games in each of The Star’s three properties from 10pm onwards on 13 July 2024 until the issue is resolved.”
Star said it was working with Japanese video game giant Konami to fix the issues “as soon as possible”, and would advise when operations were back to normal.
It did not say when it expected the machines would be up and running again or if the downtime would materially impact revenues.
The gaming glitch marks another notch in an unlucky streak for Star, which is expecting feedback from barrister Adam Bell on its response to damning 2022 inquiry findings by the end of September.
Mr Bell’s report that year highlighted dodgy money transfer schemes and blasted “deeply troubling culture permeating the ranks of senior management”. The report also concluded that Star was unsuitable to be managing and operating a casino in Sydney.
Queensland authorities last year suspend Star’s Brisbane and Gold Coast licences for three months based on Mr Bell’s original report.
Those suspensions have been deferred until December this year so Queensland authorities can deal with Mr Bell’s update.
In June, Star recruited former Crown Resorts and Lendlease boss Steve McCann to steer it through its hopeful rehabilitation.
The NSW Independent Casino Commission said it had been “encouraged” by the appointment, with a commission representative at the time commenting: “Mr McCann’s experience in navigating the complexities of remediation will serve The Star well as it prepares for the challenges ahead.”
The incoming CEO was to receive a $2.5 million cash bonus when he started his $2.5m-a-year job on July 8.
Mr McCann said he was joining Star at a “critical time” and “there are many complex issues and challenges for the company to address,” he said.
Prior to Star, Mr McCann was installed as CEO of Crown in May 2021 on a bonus-laden $2.5m annual pay-packet following a boardroom clean out as the Melbourne and Perth casino operator grappled with damaging public probes.
