Australia’s Star Entertainment hits record low on second inquiry into Sydney casino

(Reuters) – Shares of Australia’s Star Entertainment Group tumbled nearly 26% to a record low on Tuesday, a day after the New South Wales casino regulator said it would undertake a second investigation on the company’s Sydney casino operations.

Shares of the casino operator fell as much as 25.9% to A$0.415 in early trade, posting their biggest intraday drop ever, as trading resumed after a halt on Monday.

The stock was down 23.2% at A$0.430, as of 0002 GMT, and on track to snap a three-day winning streak in heavy trade. Nearly 60 million shares have changed hands so far on Tuesday, 3.8 times the 30-day average of about 15.7 million shares.

The new inquiry will investigate the suitability of Star to be associated with the management or operations of its Star Sydney casino.

The NSW Independent Casino Commission said on Monday it was “not satisfied” with Star’s progress on remedial measures after a regulator-appointed management was extended for a second time in December last year.

This would be the second inquiry into Star’s Sydney casino operations since 2022. Star’s licence to operate its Sydney casino was suspended in October 2022 after an investigation by an independent commission found it had failed to prevent money laundering and criminal activity.

Star said on Tuesday it intended to participate in the inquiry in an open, transparent and facilitative manner. It also deferred the release of its half-yearly results due on Feb. 21.