Australia’s beleaguered casino operator Star Entertainment (SGR.AX), opens new tab has received an offer of A$250 million ($158 million) from U.S. casino group Bally’s (BALY.N), opens new tab for just over half of its shares, as the debt-laden casino operator reviews options to stay afloat.
Years of regulatory scrutiny and penalties following money laundering accusations, management exodus, and border closures due to COVID-19 have pushed Star, the country’s second-largest casino operator to the brink of bankruptcy.
Here is a timeline of the firm’s struggle to keep the lights running at its casinos over the past four years.
Late 2021
Media outlets reported that Star’s own internal review accused the company of failing to rein in money laundering and fraud at its two resorts.
The state of New South Wales began a public inquiry and Australia’s financial crime regulator (AUSTRAC) initiated a probe into possible breaches of anti-money laundering (AML) laws at Star’s largest casino in Sydney.
January 2022
AUSTRAC broadened its investigation into Star over possible breaches of AML and counter-terrorism laws at the company’s casinos.
March 2022
Star’s CEO Matt Bekier resigned due to AUSTRAC’s probe.
June 2022
Queensland state launched its own investigation into Star. The company also has casinos in Brisbane and the Gold Coast.
September 2022
New South Wales inquiry found Star unfit to hold a casino licence in the state.
December 2022
Star handed an A$100 million penalty by the Queensland government.
Early 2024
Star faced a second inquiry in NSW after the casino regulator accused the company of failing to improve its governance to a satisfactory degree. Star’s new CEO and CFO quit.
June 2024
Star appointed Steve McCann, a former CEO of Crown Resorts and property giant Lendlease, as its new CEO to lead it through another regulator inquiry in New South Wales.
August-September 2024
Star was again found unfit to hold the licence in Sydney and filed its annual results a month past the regulatory deadline. The company said its corporate lenders agreed to provide a debt facility of up to A$200 million.
October 2024
Star fined A$15 million by the New South Wales’ gaming regulator.
January 2025
Star said its available cash was A$78 million at the end of December 2024.
February 2025
U.S.-based Oaktree offered to refinance A$650 million of Star’s debt in what could be a major lifeline for the cash-strapped firm. Star failed to post its interim results by the February-end deadline and again spoke to financiers about a bailout.
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 (0035.HK), opens new tab and Chow Tai Fook Enterprises.
Star also received a proposal from U.S.-based casino operator Bally’s Corp (BALY.N), opens new tab to inject A$250 million of funding, in the form of a capital raise leading to Star issuing convertible notes to its existing senior lenders. Reuters