Star Entertainment: money laundering claims to teetering on the brink
March 10 (Reuters) - 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
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.
($1 = 1.5972 Australian dollars)
Make sense of global markets with the Trading Day newsletter. Sign up here.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Guardian
6 hours ago
- South Wales Guardian
Sweet Williams in Pontardawe wins gift shop of the year
Mrs Emma Doyle runs Sweet Williams on 6-8 Herbert Street in Pontardawe. The shop has 96 reviews on Facebook and a recommendation ratio of 96%, specializing in beautiful handmade gifts. Sweet Williams is located on 6-8 Herbert Street. (Image: Emma Doyle) Mrs Doyle said: 'I am very much proud of our achievement. We have worked so hard. You only need to look at Trustpilot to see how many positive reviews we have. Now, to have recognition for that is fantastic. 'It's quite a big award. It started out as a hobby. We started in 2011 at home and then we got our first shop in 2016. So, we have had a presence on the high street for a number of years. We first had a studio and then we eventually got a shop. Mrs Doyle started her business in 2011. (Image: Emma Doyle) 'The shop became available at the start of COVID, and we have been here ever since. My background before I started this business was in law. I started the business while I was on maternity leave. 'I'm always trying to put Pontardawe on the map. We are a huge champion of shopping local and independent and feel privileged to have a space to do this in Pontardawe. 'This is important because in the last couple of years it's been tough for businesses on the high street. So, to have support from the local community is fantastic.' The store specialises in handmade gifts. (Image: Emma Doyle) Mrs Doyle was informed via email that she was nominated for the award, before a panel of judges looked at her business, including her reviews. She will attend Ashton Gate Football Stadium in Bristol next month to attend an award ceremony and receive the accolade in person. Mrs Doyle continued: 'We have supplied products for the Royal Family and received an award from Theo Paphitis from Dragons Den. But this award has been the icing on the cake. 'We just want to keep building our customer base. We still have so many people coming in who didn't realise we were here. 'We are a family business. My husband chips in, as do my children. My mum and dad also get involved. We even offer sowing workshops." The business creates its own brand of textile products. (Image: Emma Doyle) Sweet Williams is a gift shop consisting of several retail spaces set over 4 floors. The business has recently reopened its basement following a yearlong renovation project, which is now home to Welsh/locally sourced foodie treats and a pre-loved bookshop. On the fourth floor, Sweet Williams creates its own brand of textile products, which are then supplied to over 200 stockists, helping other independent retailers to grow their presence on the local high street.
Reuters
9 hours ago
- Reuters
China's forex reserves up $3.6 billion in May, less than expected
BEIJING, June 7 (Reuters) - China's foreign exchange reserves rose by a less-than-expected $3.6 billion in May, official data showed on Saturday, as the dollar continued to weaken against other major currencies. The country's foreign exchange reserves, the world's largest, rose 0.11% to $3.285 trillion last month, below the Reuters forecast of $3.292 trillion. They were $3.282 trillion in April. The increase in reserves was due to "the combined effects of factors such as exchange rate conversion and asset price changes," China's State Administration of Foreign Exchange said in a statement. The yuan weakened 1.05% against the dollar in May, while the dollar slid 0.23% against a basket of other major currencies .
Scottish Sun
9 hours ago
- Scottish Sun
All the shops closing this weekend including iconic department store shutting after 124 years
We reveal why the retail sector is struggling below SHUTTERED UP All the shops closing this weekend including iconic department store shutting after 124 years A HOST of stores are shutting for good this weekend including a historic department store. Retailers have struggled over recent years as shoppers' wallets and purses take a hit from high inflation. Advertisement 1 A range of stores are shutting this weekend Credit: Alamy An increase in employer National Insurance contributions and wage costs since April has added to the pressure. Combined with soaring business rates, energy and rental costs, some retailers have been forced to hike prices and even shut stores. It's worth bearing in mind of course that retailers close shops for a host of reasons and not always because of a poor economic backdrop. Sometimes chains will shut a poorly-performing branch in one area and open another further afield where they think they'll see better footfall. Advertisement Plenty of retailers are moving away from high streets and towards out-of-town retail parks too. In any case, five shops will shut this weekend including a more than 120-year-old department store. Here is the full list of shops we know are closing down permanently. Ginger Norwich-based Ginger will pull down its shutters for the final time on Saturday. Advertisement The shop was founded by David and Rodger Kingsley in 1978 following the success of their sister company Jonathan Trumbull in 1971. But current store manager Beckie Kingsley said the store will close due to the economic climate and aftermath of Covid-19. Britain's retail apocalypse: why your favourite stores KEEP closing down She said: "It's with truly heavy hearts that, after 46 unforgettable years, we have made the incredibly difficult decision to close the doors at our beautiful, beloved and historic Timber Hill home. "We've weathered many storms over the decades, but there's been ongoing challenges of today's financial climate - coupled with the lasting impact and huge shifts within the retail landscape since Covid. Advertisement "This led us to ask - does it still work for us? After deep reflection, the answer, sadly, is no." Daniel of Ealing Historic department store Daniel of Ealing, in London, will shut for good on Sunday, after opening 124 years ago. Prices have been slashed across homeware, fashion, toys, sportswear and shoes, with up to 50% off. Shoppers finding out the iconic shop will close have shared their dismay online. Advertisement One posted saying: "Loved this shop and it's top floor restaurant." While another added: "Ealing has lost its heart, soul and uniqueness!" The Works Stationer The Works is shutting its Margate store on Sunday, with shoppers' next nearest branches in Westwood Cross Shopping Centre or Ramsgate Garden Centre. A spokesperson for the chain said the decision to shut the branch had been made "as part of ongoing plans to optimise our store portfolio". Advertisement The move has been met with sadness by shoppers, with one online stating: "No I love The Works." Another dejectedly added: "Be nothing left in the town soon." Emporium Worthing Independent bar and shop Emporium Worthing is closing to the public on Sunday "with a heavy heart". The owners posted a lengthy statement on Facebook announcing the closure. Advertisement It said: "We share the challenging decision to close Emporium Worthing after five memorable years of serving you. "This has been a tough choice for us, but after careful reflection, we believe it is the best path forward and the right choice for us at this time." A huge closing down sale has been launched to clear stock, even including fixtures and fittings from inside. It's not all bad news though as the Emporium will be moving online and selling hardwares. Advertisement New Look New Look is closing its branch in the Northfield Shopping Centre, Birmingham, on June 8. A picture recently posted on Facebook of the shop window advertised the closure and signposted customers to the retailer's website. Customers finding out about the closure have been left gutted. One posted on Facebook: "Will soon be a ghost town, absolutely nothing left." Advertisement Another commented: "Online (retail) is killing shops." A New Look spokesperson said: "We would like to thank all of our colleagues and the local community for their support over the years. "We hope customers continue to shop with us online at where our full product ranges can be found." RETAIL PAIN IN 2025 The British Retail Consortium predicted that the Treasury's hike to employer NICs would cost the retail sector £2.3billion. Research published by the British Chambers of Commerce earlier this year shows that more than half of companies planned to raise prices by early April. Separately, the Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020." Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Advertisement Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
