Star Entertainment (ASX:SGR) share price lifts despite news execs may face public hearing

Casinos across Australia have come under increased scrutiny.

| More on:
heavy lifting, lifting index, carrying weight, boy lifting dumbbell above his head

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Star Entertainment Group Ltd (ASX: SGR) share price is charging higher today, up 3.7% to $3.63 per share.

The wider market is having a good run too, with the S&P/ASX 200 Index (ASX: XJO) up 0.5% at time of writing. A second day of gains for the index.

Star Entertainment's share price boost today comes despite news that its executives could still face a public hearing.

What's all this about a public hearing?

The Star Entertainment share price has come under tremendous pressure over the past 9 days, tumbling a gut wrenching 30% from 6 October through to the end of trading this Tuesday, 12 October.

This, as my Foolish colleague Marc Sidarous noted earlier in the week, came "after a joint investigation by the Sydney Morning HeraldThe Age, and 60 Minutes aired explosive allegations of money laundering, facilitating organised crime, fraud, and foreign interference at its casinos".

Since the closing bell on Tuesday, the Star Entertainment share price has rebounded 13%, though shares remain down 21% from Tuesday's close.

Today, investors appear to be shrugging of concerns of a potential public hearing on the legal matter, one that could pull in the company's executives.

Chris Sidoti served as the chairman of the New South Wales Independent Liquor and Gaming Authority (ILGA) from 2008–2016.

As the Australian Financial Review reported this morning, Sidoti believes that Adam Bell, the investigator reviewing Star's Sydney casino licence, could haul in the company's top brass for a public hearing over the damning allegations.

According to Sidoti:

The terms of reference on the authority website do not lay down any process for the review and so my assumption is that Mr Adam Bell, SC, can conduct it in any way he wishes. If he wants to hold public hearings, then it seems to me that he is free to do so. That's as it should be. It's not a matter for the Premier or the minister or even the authority.

An ILGA spokesperson contacted by the AFR for comment wasn't overly forthcoming, saying only, "If the Independent Liquor & Gaming Authority receives any recommendation from Mr Bell that any public hearings are required, it will give such a recommendation appropriate consideration."

Star Entertainment share price snapshot

Having been hammered by the selloff earlier this week, the Star Entertainment share price remains down 3.5% year-to-date. By comparison the ASX 200 is up 10% so far in 2021.

Over the past month, Star's shares are down 14%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

A couple of friends at a rooftop party enjoying some hot and tasty Domino's pizza
Dividend Investing

Own Domino's shares? Today is pay day!

Eligible Domino’s shareholders can expect some welcome passive income today.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

a woman with lots of shopping bags looks upwards towards the sky as if she is pondering something.
Consumer Staples & Discretionary Shares

How a potential demerger could deliver a 10% upside for this ASX 200 stock

Investors might have even more reasons to love this ASX 200 stock if rumours are true.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Consumer Staples & Discretionary Shares

Why Goldman Sachs expects market-beating returns from Super Retail shares

Goldman Sachs thinks this retail share could offer big returns for investors.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
52-Week Highs

Why is the A2 Milk share price up 46% year to date and at a 52-week high?

This infant formula company's shares have delivered the goods this year.

Read more »

Happy man on a supermarket trolley full of groceries with a woman standing beside him.
Consumer Staples & Discretionary Shares

2 things I'm waiting for before buying Coles shares

I'm waiting for two things before I add Coles to my share portfolio.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Consumer Staples & Discretionary Shares

If I'd put $5,000 in Wesfarmers shares at the start of 2024, here's what I'd have now

Are investors smiling this year? Let's see how its shares have performed.

Read more »