Troubled Australian casino company Star Entertainment received a cash infusion of AUD $53 million ($33.4 million) this week in return for half of the company’s stake in the company’s Brisbane casino.
Hong Kong investors Far East Consortium International and Chow Tai Fook Enterprises already owned half of the Brisbane property, and the new deal gives them complete control of the casino. In return, Star gets Far East Consortium and Chow Tai Fook’s two-thirds ownership in the Gold Coast Star casino.
The company also received a refinancing proposal that would provide funding of up to AUD $940 million ($592 million) and AUD $250 million ($157.6 million) bridging facility short-term funding to infuse more cash into the struggling enterprise.
“While there is more to do to have access to the funding from the bridge facility and the refinancing proposal, these initiatives, together with the agreement to exit Destination Brisbane Consortium and expand our operations at the Gold Coast, improve our capacity to have a viable future,” Star CEO Steve McCann said.
Troubled Organization
The company has faced major compliance issues in recent years with the jobs of thousands of casino workers in jeopardy as well as possible license revocation. In October, regulators ruled that the company’s Sydney property could remain open but also incurred a $10 million fine.
However, the New South Wales Independent Casino Commission (NICC) continued reviewing the property’s new efforts to prevent money laundering and other financial crimes. The NICC conducted investigations into the casino in 2022 and 2024, noting that the Star had “continuing compliance failures and operations that fell far short of suitability.”
“Despite more prescriptive supervision that prevented the type of misconduct seen in the first inquiry, numerous shortcomings in governance, regulatory compliance, technology and risk management remain, including in areas that The Star claimed it had remediated,” NICC Chief Commissioner Philip Crawford said.
The Australian Securities and Investments Commission has alleged wrongdoing by the company’s board and forced Star to set aside $150 million in cash in the event it’s fined again based on further money laundering allegations.
“One inquiry found Star had allowed organized crime bosses, including triad gangs from Macau, to run gambling operations out of its premises, with it deemed ‘unfit’ to hold a license,” Australia’s ABC network reported.
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