()- Australia’s struggling casino company, The Star Entertainment Group, was unable to obtain a financial rescue package worth up to AU$940 million ($590.98 million) from Salter Brothers Capital, as stated on Wednesday. The business has faced multiple challenges including extensive regulatory investigations and fines stemming from allegations of money laundering, significant leadership changes, and operational disruptions caused by the global pandemic. These issues have placed Star—Australia's number two casino operator—at risk of insolvency. Below is a chronology detailing the corporation's efforts to maintain operations across their gaming venues throughout the last four years.
Late 2021
According to media reports, an internal investigation conducted by Star revealed that the company was criticized for not controlling money laundering and fraud at its two casino properties.
The government of New South Wales launched a public investigation, and the country’s financial crimes watchdog, AUSTRAC, started an inquiry into potential violations of anti-money laundering regulations at Star's biggest gambling venue in Sydney.
January 2022
AUSTRAC expanded its probe into The Star regarding potential violations of anti-money laundering regulations and counter-terrorism legislation at the organization's gambling venues.
March 2022
The CEO of Star, Matt Bekier, stepped down as a result of an investigation conducted by AUSTRAC.
June 2022
The Queensland government initiated an independent inquiry into Star Entertainment Group. Additionally, the firm operates casinos in Brisbane and the Gold Coast.
September 2022
The investigation in New South Wales concluded that Star is not qualified to be granted a casino license within the state.
December 2022
Star was hit with a $A100 million fine by the Queensland government.
Early 2024
After facing a second investigation in New South Wales, The Star encountered criticism from the casino regulator for not enhancing its governance sufficiently. Following this, both the newly appointed CEO and CFO of The Star resigned.
June 2024
Star named Steve McCann, who previously served as CEO at both Crown Resorts and the property conglomerate Lendlease, as its new leader to guide it through an additional regulatory investigation in New South Wales.
August-September 2024
The star was once more deemed unqualified to retain the license in Sydney and submitted its yearly financial outcomes after the regulatory deadline had passed. The firm mentioned that its institutional creditors consented to offer a loan facility totaling up to AU$200 million.
October 2024
The star was penalized with an A$15 million fine by the New South Wales' gambling regulatory body.
January 2025
The star announced that its available cash amounted to A$78 million by the end of December 2024.
February 2025
The U.S.-based investment firm Oaktree proposed refinancing A$650 million of Star's debt, potentially providing significant financial relief to the struggling company. Star missed the deadline for releasing its interim results by the end of February and once more discussed rescue options with lenders.
March 2025
Star received a bailout offer in the form of a refinancing proposal with potential to provide debt funding of up to A$940 million and an A$250 million bridging facility. The company also said it would sell 50% stake in its Queen's Wharf project in Brisbane to Far East Consortium International and Chow Tai Fook Enterprises.
The firm additionally got an offer from the American-based gaming business Bally's Corp to provide A$250 million through a capital increase, which would result in Star issuing convertible notes to its current major creditors.
The suspension of licenses for Star's casinos in Sydney and Gold Coast has been prolonged until at least September 30.
April 2025
The star has pulled back an A$940 million refinancing offer from Salter Brothers, stating they are now considering Bally's Corp’s proposition instead.
(1 US dollar equals 1.5906 Australian dollars)
(Reported by Aaditya Govind Rao, Rajasik Mukherjee, and Shivangi Lahiri in Bengaluru; Edited by Mrigank Dhaniwala and Alan Barona)