The Star keeps hope afloat with $500m lifeline
The owners of The Star Gold Coast casino and resort are close to securing a $500 million lifeline as it battles to remain afloat.
The Star Entertainment Group, which owns the Gold Coast casino, manages the Gold Coast Convention and Entertainment Centre and operates casinos in Brisbane and Sydney, says it hopes its refinancing deal from WhiteHawk Capital Partners will be in place by May 15.
The announcement comes 12 months after The Star Entertainment Group entered crisis talks about its future, which ultimately led to a takeover by US giant Bally’s Corporation, which owns and operates 19 casinos across 11 US states.
US casino giant Bally’s Corporation and Australian pub and Hedges Avenue-dwelling pub billionaire Bruce Mathieson now jointly own more than 60 per cent of the company after pouring $300 million into a rescue deal late last year.
However, the company admitted as recently as last month that there were real concerns that it would not be able to continue the business.
While its Gold Coast operations remain profitable, The Star Entertainment Group has staggered from one crisis to another since a money-laundering scandal erupted in 2021.
NSW’s Independent Casino Commission heard evidence of money laundering, links to organised crime and fraud. The Star was fined $15 million and is now operating under a government-appointed manager.
This week, the NSW Independent Casino Commission told The Star that the manager’s appointment for The Star Sydney casino has been extended until September 30, 2026.
A 2022 Queensland inquiry found that Star was “unsuitable to hold a licence”. The Star Gold Coast was due to have its casino licence suspended for 90 days from December 20, 2024, but the Queensland Government has consistently postponed its decision.
The Star Entertainment Group employs 9000 people across its sites.
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