(Reuters) – Shares in Australia's Star Entertainment Group fell nearly 26% on Tuesday, a day after the New South Wales state casino regulator announced a second investigation into the company's Sydney casino operations. , hit an all-time low.
When trading resumed after a trading halt on Monday, the casino operator's share price fell as much as 25.9% to A$0.415 in early trade, its biggest intraday drop on record.
As of 0002 GMT, the stock was down 23.2% to A$0.430, on track to extend its three-day winning streak in heavy trading. Nearly 60 million shares had changed hands through Tuesday, 3.8 times the 30-day average of about 15.7 million shares.
The new inquiry will look into whether it is appropriate for Star to be involved in the management or operation of the Star Sydney Casino.
The NSW Independent Casino Commission said on Monday it was “not satisfied” with Star's progress in remedial action after the regulator-appointed administration period was extended for a second time in December last year.
This is the Star's second investigation into Sydney casino operations since 2022. Star's license to operate a Sydney casino was suspended in October 2022 after an independent commission found it was failing to prevent money laundering and criminal activity.
Starr said Tuesday it intends to participate in the investigation in an open, transparent and facilitative manner. The announcement of half-year financial results, scheduled for February 21, has also been postponed.
(Reporting by Echha Jain in Bengaluru; Editing by Subhranshu Sahu)