Star Entertainment, Australia’s second-largest casino operator, finds itself in dire financial straits. Accusations of money laundering, regulatory penalties, management upheaval, and the impact of COVID-19 have pushed the company to the brink of collapse. This timeline chronicles Star’s struggles over the past four years.
Table Content:
- Late 2021: Initial Allegations and Investigations
- January – March 2022: Expanding Investigations and CEO Resignation
- June – September 2022: Queensland Inquiry and Unfit Ruling
- December 2022 – Early 2024: Financial Penalties and Leadership Exodus
- June – September 2024: New CEO and Continued Regulatory Scrutiny
- October 2024 – January 2025: Mounting Fines and Dwindling Cash Reserves
- February 2025: Refinancing Attempts and Missed Deadlines
- March 2025: Bally’s Bid Emerges
Late 2021: Initial Allegations and Investigations
Media reports revealed Star’s internal review, which uncovered failures to control money laundering and fraud at two of its resorts. Following these reports, the state of New South Wales launched a public inquiry. Concurrently, AUSTRAC, Australia’s financial crime regulator, initiated an investigation into potential breaches of anti-money laundering (AML) laws at Star’s flagship Sydney casino.
January – March 2022: Expanding Investigations and CEO Resignation
AUSTRAC widened its investigation to encompass potential breaches of AML and counter-terrorism laws at all Star casinos. The mounting pressure led to the resignation of Star CEO Matt Bekier in March 2022.
June – September 2022: Queensland Inquiry and Unfit Ruling
Queensland, where Star operates casinos in Brisbane and the Gold Coast, launched its own investigation into the company’s operations. In a significant blow, the New South Wales inquiry declared Star unfit to hold a casino license in the state in September 2022.
December 2022 – Early 2024: Financial Penalties and Leadership Exodus
The Queensland government imposed a A$100 million penalty on Star. A second inquiry in NSW followed in early 2024, accusing Star of insufficient governance improvements. This period saw the resignation of both Star’s new CEO and CFO, deepening the leadership crisis.
June – September 2024: New CEO and Continued Regulatory Scrutiny
Steve McCann, former CEO of Crown Resorts and Lendlease, was appointed as Star’s new CEO. Despite new leadership, Star faced ongoing regulatory challenges. The company was again deemed unfit to hold its Sydney license and filed its annual results late, relying on a A$200 million debt facility from lenders.
October 2024 – January 2025: Mounting Fines and Dwindling Cash Reserves
A further A$15 million fine was levied by the NSW gaming regulator. By January 2025, Star reported only A$78 million in available cash, highlighting its precarious financial position.
February 2025: Refinancing Attempts and Missed Deadlines
U.S.-based Oaktree offered a potential lifeline with a proposal to refinance A$650 million of Star’s debt. However, Star missed its February deadline for interim results and continued seeking financial assistance.
March 2025: Bally’s Bid Emerges
Amidst ongoing financial struggles, Star received a A$250 million offer from U.S. casino group Bally’s for just over half of its shares. This offer represents a potential turning point, but the future of Star Entertainment remains uncertain. The company continues to grapple with the consequences of past misconduct and the challenges of a rapidly changing industry.
