(Reuters) -Australia's Star Entertainment has appointed Steve McCann as its group CEO and managing director to lead the embattled casino operator out of a regulator inquiry into its Sydney operations that had triggered a management exodus in recent months.

The embattled casino operator said on Wednesday that McCann, who previously served as top boss at Australian casino firm Crown Resorts, now owned by Blackstone, will join the firm on July 8.

Star said that McCann will be expected to navigate the firm out of a second inquiry into the firm's suitability to manage its Sydney casino operations while working with a new management team following a slew of high-level departures.

The casino operator's shares were trading 2.2% higher as of 0239 GMT. They were up as much as 3.2% earlier in the day.

"I look forward to joining The Star at this critical time," McCann said in a statement.

"I recognise that there are many complex issues and challenges for the company to address."

His appointment follows the departure of former CEO Robbie Cooke and finance boss Christina Katsibouba in March this year, and nearly two years after longstanding top boss Matt Bekier resigned, amid an investigation into Star over breaches of anti-money laundering and counter-terrorism laws.

"A change of CEO will do very little to change the challenging headwinds Star is facing," Brad Smoling, managing director at Smoling Stockbroking, said.

McCann, who has also held top executive positions at real estate firm Lendlease, will be paid A$2.5 million annually and a A$2.5 million sign-on bonus, among other provisions like performance rights, Star said.