Australia’s second-largest gaming operator, The Star, saw its shares plummet by almost 26 percent to an all-time low on Tuesday, following an announcement by the New South Wales casino regulator of a second investigation into the company’s Sydney casino operations.
According to the report, The Star’s shares nosedived by up to 25.9 percent to A$0.415 per share in early trading, marking their largest intraday decline ever, as trading resumed following a halt on Monday.
The Star had just inked an agreement with state authorities on new tax rates – part of which includes guaranteeing jobs and implementing a cashless trial.
The investigation will assess The Star’s suitability for involvement in managing or operating its Star Sydney casino.
On Monday, the NSW Independent Casino Commission expressed dissatisfaction with The Star’s remedial efforts, prompting a second extension of the regulator-appointed management last December.
This marks the second inquiry into The Star‘s Sydney casino operations since 2022. In October 2022, The Star’s license to operate its Sydney casino was suspended due to findings from an independent commission investigation, which revealed lapses in preventing money laundering and criminal activities.
