By Stuart Condie
SYDNEY–The Star Entertainment Group Ltd. shares dropped to an 17-month low amid a review into whether the Australian casino operator is complying with its license conditions at its flagship Sydney casino.
The stock dropped as much as 7% in Friday’s early trade to A$3.08, its lowest intraday level since October 2020. An independent review commissioned by the gaming watchdog New South Wales began hearing testimony on Thursday, with its remit including potential breaches of money-laundering law.
Shares were last at A$3.23, down 2.4%. They have lost 12% so far in 2022, wiping about 428 million Australian dollars (US$315.7 million).
The review on Thursday heard testimony from Star Assistant Group Treasurer Paulinka Dudek. Witnesses scheduled to appear next week include current and former Star managers, property developer and former Star patron Phillip Dong Fang Lee, and representatives from global audit firm KPMG International Ltd.
Rival casino operator Crown Resorts Ltd. is limited to non-gaming operations at its Sydney showpiece while it addresses issues that led the NSW Independent Liquor and Gaming Authority in 2021 to rule it was unsuitable for a casino license.
Write to Stuart Condie at stuart.condie@wsj.com
