Star Entertainment Faces Financial Turmoil Amid Bailout Offers and Regulatory Scrutiny

Australia’s embattled casino operator, Star Entertainment, has received a A$250 million ($158 million) offer from U.S. casino group Bally’s for a stake exceeding half of its shares. The proposal comes as Star, burdened by debt, explores various options to remain financially viable.

Years of intense regulatory scrutiny, substantial penalties linked to money laundering allegations, a management shakeup, and the impact of COVID-19 border closures have left Star—Australia’s second-largest casino operator—on the verge of bankruptcy.

The following timeline details the company’s ongoing struggle to maintain operations over the past four years.

Late 2021: Reports from media outlets revealed that Star’s internal review had accused the company of failing to control money laundering and fraudulent activities at its two resorts. This prompted the state of New South Wales to launch a public inquiry, while AUSTRAC, Australia’s financial crime regulator, initiated an investigation into potential violations of anti-money laundering (AML) laws at Star’s largest casino in Sydney.

January 2022: AUSTRAC expanded its probe into Star, looking into possible breaches of AML and counter-terrorism financing laws across its casino operations.

March 2022: Amid increasing regulatory pressure, Star CEO Matt Bekier resigned as AUSTRAC’s investigation intensified.

June 2022: The Queensland state government launched its own inquiry into Star’s compliance practices, extending the scrutiny to its casinos in Brisbane and the Gold Coast.

September 2022: The inquiry in New South Wales concluded that Star was unfit to hold a casino licence in the state.

December 2022: The Queensland government imposed a penalty of A$100 million on Star as a consequence of its regulatory failings.

Early 2024: A second inquiry was launched in New South Wales after the casino regulator found that Star had not sufficiently improved its governance standards. This led to the resignation of both Star’s newly appointed CEO and CFO.

June 2024: Star appointed Steve McCann, a former CEO of Crown Resorts and Lendlease, as its new CEO. His appointment came as the company braced for another regulatory inquiry in New South Wales.

August-September 2024: Star was once again deemed unfit to hold its Sydney casino licence. The company also missed the regulatory deadline to file its annual results by a month. Amid mounting financial pressure, Star disclosed that its corporate lenders had agreed to provide a debt facility of up to A$200 million.

October 2024: The gaming regulator in New South Wales imposed an additional A$15 million fine on Star.

January 2025: Star reported that its available cash reserves stood at A$78 million as of the end of December 2024.

February 2025: In a potential financial lifeline, U.S.-based investment firm Oaktree offered to refinance A$650 million of Star’s debt. Despite this, Star failed to release its interim financial results by the February-end deadline and continued discussions with financiers regarding a possible bailout.

March 2025: Star secured a bailout offer through a refinancing proposal, which included the possibility of obtaining up to A$940 million in debt funding, alongside an additional A$250 million bridging facility. The company also announced plans to sell a 50% stake in its Queen’s Wharf project in Brisbane to Far East Consortium International and Chow Tai Fook Enterprises.

At the same time, U.S.-based casino operator Bally’s Corporation presented a proposal to inject A$250 million into Star, structured as a capital raise. Under this arrangement, Star would issue convertible notes to its existing senior lenders, marking yet another attempt to stabilize its precarious financial situation.

By fLEXI tEAM