Notes

Star Entertainment avoids Game Over as Ballys throws $300 Million lifeline
Those inquiries found that Star, like its Australian rival, Crown Resorts, failed to protect its casinos from being used by criminal syndicates to launder money. The Star was also accused of welcoming gamblers from China and allowing players banned in one Australian state to gamble at one of its casinos in another. The business had benefited from the breaches, bringing in almost $1.3 billion in revenue through junkets at its Sydney and Queensland casinos and at least $1.33 billion more through high-risk gamblers. Star Entertainment’s lenders have offered to give the wagering group an extra $150 million to help it survive a cash crunch caused by cost blowouts at its new Brisbane casino and a slowdown in patrons visiting its gaming floors. The Sydney licence had first been suspended when an inquiry found damning evidence of anti-money laundering and counter-terrorism failings, although it has been allowed to keep the casino operating with a regulator-appointed manager. Embattled casino operator Star Entertainment is facing a licence cancellation and a $100 million fine after the industry regulator hit it with a show cause notice.
The casino group could be broken up in the process, as administrators would search for buyers for individual assets, if the company can't be rescued as a whole. The future of Star Entertainment and its thousands of workers remains uncertain as the company's efforts to secure a financial lifeline go down to the wire. Administrations can see a company restructured or traded out of its woes, sold off to new owners, or even totally liquidated if the business is deemed unviable. "We're not in the business of being concerned about the corporate suits who sit around a company.
Labor was not satisfied that if Star did collapse that it would ever get its money back and the casino refused to stop paying its executives bonuses. Star Entertainment had also propositioned the previous Labor government for financial support which similarly did not materialise. Prior to Queensland's state election in October Labor had awarded Star a casino license which the new LNP government has since contested. Star's cash reserves dropped 46 per cent between September and December, the casino giant told the Australian Stock Exchange this week. Mr McCann also lobbied the New South Wales government for financial relief in 2024 but Premier Chris Minns was quick to rule out that option. 'We're not in the business of being concerned about the corporate suits who sit around a company.
“Any deal that promises to keep venues in Brisbane, the Gold Coast and Sydney operating as a going concern is a good result for the Star workers, their families and the communities they live in,” the union’s casino director Andrew Jones said. The group’s board will now seek for all shareholders to agree unanimously to the deal as it is within their best interests and will unlock the remaining Bally’s contribution, the ASX statement said. The Queensland government had been considering issuing $60 million in tax relief to the struggling business, while NSW has already delayed tax increases until the end of this decade. Star has been thrown into financial turmoil in recent months after a regulator’s probe found it was unsuitable to hold a casino licence. Its shares were suspended from trading last month because it failed to issue its 2024 financial results within the corporate reporting period.
Without significant funds from the proceeds of crime, or exploitation of the vulnerable, casinos are clearly struggling. Although neither casino chain closed its doors, regulatory breaches led to appointment of special managers to oversee the business and hold the licences. Media reporting, inquiries, and royal commissions into Crown, and then Star, give some insight into how the casino business used to be run in Australia. But over the same period, expenditure at casinos declined by more than 35% nationally, and by 42% in New South Wales.
After a series of damning inquiries, Star casinos in New South Wales and Queensland are being overseen by government-appointed caretakers. The company has also churned through key personnel, including two chief executive officers (CEO). It has burned through so much cash that despite raising more than A$2 billion in equity and debt since the start of 2023, it warned last week that it had just A$79 million left – barely enough to see it through this quarter. Regulatory inquiries have found it unsuitable to operate its Sydney and Queensland casinos, placing them under government supervision. The casino operator has been crushed by two inquiries that found it unfit to retain its casino licence. high roller baccarat Australia was on top of a KPMG report the board saw, which said Star’s anti-money laundering “protections are woefully deficient in respect of junkets”. According to Higgins, there were enough red flags at board level to indicate that directors needed to investigate further.
The loss was predominantly driven by a $1.4 billion write-down of the value of its assets, with $819 million on its Brisbane properties including its new flagship, Queen’s Wharf Brisbane. In a separate development for the casino operator, its shares surged in early trade on Monday after it confirmed it was in talks to sell off its stake in Brisbane's Queen's Wharf casino development. The court has heard allegations the leadership approved relationships with people linked to organised crime, rather than addressing money laundering risks by questioning whether Star should be dealing with those individuals. Shares in Star rallied on Monday, after the casino operator confirmed it had received bids to buy out its stake in Brisbane's Queen's Wharf development, as it warned of "material uncertainty" about its future prospects. AUSTRAC brought civil penalty proceedings against the company in November 2022 for alleged breaches of anti-money laundering (AML) and counter-terrorism financing laws.
Star Entertainment is seeking a financial lifeline after revealing its cash reserves sank to just $79 million at the end of 2024. Along with the $15 million fine – to be paid in three instalments – the anti-money laundering authority AUSTRAC is expected to hit the group with a fine of more than $200 million. He now must lift governance standards, devise a proper management structure and appoint new senior managers for the individual casinos. After whacking Star with a $15 million fine, the NSW Independent Casino Commission has given the company's new management until March next year to get its house in order. But it has insisted the group file monthly financial reports and updates on its restructuring. The company was sounding out investors for a $300 million raising last week via a convertible notes issue before the final report of a second inquiry into its Sydney casino landed from Adam Bell, SC, on Friday. While the report said Star Entertainment was still unfit to hold a licence, it stopped short of recommending the licence be revoked.
Consumers would be able to impose self-exclusion across all licensed providers and set financial limits on gambling. Gaming operators would be required to implement safeguards to detect and respond to misuse or abuse of betting services. Veikkaus would retain its monopoly on lottery draws, scratch cards, and physical slot machines and casinos. All gambling services would remain restricted to adults, with mandatory identity verification applied across the sector. The potential collapse of the company puts the jobs of about 9,000 workers across its three casinos on the line. Shares in struggling casino giant Star Entertainment have plummeted on Friday after a brief trading halt was lifted, as the company searches for a financial lifeline to avoid collapsing.
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