Bruce Mathieson ups stake in The Star as casino’s disdain for watchdog laid bare

Pubs baron Bruce Mathieson has increased his stake in Star Entertainment Group yet again despite the outlook for the struggling casino group getting darker by the day due to a number of allegations out of the first week of the Bell inquiry into the company’s culture.

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.

The 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.

So far, 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.

On Thursday, the inquiry was told the company had grown to resent the presence of the NSW Independent Casino Commission and Weeks, and was revealed to have sacked seven employees after the company was told they had failed to complete welfare checks on customers who had played the pokies for more than three hours.

Managing Values principal Dr Attracta Lagan – who has worked with The Star as a business ethics consultant – told the hearing the group did not recognise the authority of the regulator and often operated as if the regulator was “out to get them” instead of trying to work with them.

Lagan, who also worked with Crown Resorts during the early stages of its remediation, said the management of The Star never attempted to impress upon staff that the regulator was trying to work with them and protect their jobs.