Star Casino Deal in Peril as Partners Threaten to Walk

Posted on: June 30, 2025, 01:01h. 

Last updated on: June 30, 2025, 02:57h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.
  • Star’s $50M casino deal now close to collapsing
  • Partners may abandon Queen’s Wharf buyout agreement

Star Entertainment Group’s (ASX: SGR) fight for survival has hit another snag. The embattled Australian casino operator’s partners in Brisbane’s Queen’s Wharf casino project — Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium — have said they are prepared to walk away from an AU$50 million (US$33 million) buyout deal.

Star Entertainment Group, Queen’s Wharf casino, casino buyout deal, Chow Tai Fook, financial crisis
Fresh peril for Star Entertainment as Hong Kong investors threaten to back out of a deal for Brisbane’s Queens Wharf development. (Image: Star Entertainment)

The investors agreed in March to acquire Star’s 50% stake in the AU$3.6 billion (US$2.4 billion) Queen’s Wharf development at what many analysts described as a fire-sale price.

$1.4B Debt Load

The deal was seen as a lifeline for Star as it battled a deepening financial crisis. It would enable the company to shed an AU$1.4 billion (US$900 million) debt obligation, secure a monthly AU$5 million (US$4 million) operating fee for managing the Brisbane casino, and refocus resources on its other core assets in the Gold Coast and Sydney. But in a surprise move on Monday, Star told investors the deal was on the ropes.

“Since the recent general meeting, the parties have continued to negotiate with a view to finalizing the long-form documents but, as of this morning, have not reached an agreement on the outstanding commercial issues,” the company said in a filing to the ASX.

This morning, The Star received from the joint venture partners a notice to terminate the heads of agreement which will become effective five business days from today, unless withdrawn earlier,” it added.

The potential collapse of the deal comes just days after Star shareholders overwhelmingly approved an AU$300 million (US$195 million) capital injection from US gaming group Bally’s Corporation (NYSE: BALY.T) and the Mathieson family, the company’s largest existing investor.

Liquidity Crisis

Star has faced a severe liquidity crisis over the past two years, reporting substantial losses and hemorrhaging market value. It has also been the subject of multiple regulatory investigations related to anti-money laundering (AML) failures and poor corporate governance practices.

At one point, the company reportedly had only AU$79 million (US$52 million) in cash — barely enough to fund operations for another week.

Australia’s financial crimes regulator, AUSTRAC, has launched civil proceedings seeking an AU$400 million (US$260 million) fine against Star for alleged AML breaches. The company has warned that even a fine of AU$100 million (US$66 million) could threaten its ability to continue operating.

Star has said it remains open to further discussions with its joint venture partners and will update the market if material developments occur.