Star Entertainment Clings to Life After Unloading Brisbane Casino and Securing A$200 Million Loan

March 06, 2025

Star Entertainment continues to fight for survival, although its outlook has marginally brightened in the last 24 hours. 

Near insolvency and bankruptcy, with speculation that the Australian gaming company might deplete its funds by this weekend, Star has allegedly consented to sell The Star Grand Brisbane to two of its major investors for a mere A$50 million (US$31.7 million). Star allocated A$1.6 billion to move its Brisbane operation from the Treasury Building to a new resort property at Queen’s Wharf, which was inaugurated last August. 

The purchasers of The Star Brisbane, Hong Kong firms Chow Tai Fook and Far East Consortium, will also take on A$430 million in debt owed to creditors who aided in funding the resort situated on the Brisbane River's banks. Chow and Far East both possess 25% of the outstanding shares of The Star Entertainment. 

Since the divestment of Star Brisbane will require time for regulatory approvals, Chris Wallin, an Australian billionaire who amassed his wealth in the coal sector, has consented to lend Star A$200 million to secure its short-term survival. 

Compliance Issues 

Far East Consortium is a publicly traded firm focused on the development and management of hotels, parking structures, and mixed-use spaces. 

Chow Tai Fook is a group with strong connections to the Chinese government. The privately owned firm is well-acquainted with gaming and hospitality, since Chow Tai Fook possesses Baha Mar in The Bahamas and the Rosewood Hotel Group. 

If Queensland gaming regulators grant approval for The Star to sell its Brisbane stake to Far East and Chow Tai Fook, they will likely demand that the buyers engage a third party to manage the casino and resort for them, avoiding any direct control over daily operations. Chow Tai Fook is primarily responsible for The Star's issues initially, as the Hong Kong company's connections to Triad groups raised suitability concerns for The Star nationwide. 

Those investigations revealed that The Star did not safeguard its casinos from misuse by criminal organizations for money laundering. The Star’s casinos, including The Star Gold Coast and The Star Sydney in New South Wales, alongside Brisbane, were also charged with inviting and promoting gamblers prohibited in other states to wager. 

Economic Collapse 

The company incurred costs amounting to hundreds of millions of Australian dollars in fines and remediation due to government investigations in Queensland and New South Wales. The regulatory issues, combined with a decline in casino visitors and a reduction in significant transactions being processed, have led investors to flee. 

On February 28, the Australian Securities Exchange suspended trading of The Star shares due to the company’s failure to submit a quarterly financial report. Star shares (ASX: SGR) are currently priced at only A$0.11, equivalent to seven U.S. cents. 

Although the trading of public shares is suspended, Star announced this week via an ASX statement that Boston's State Street Corporation bought 144,326,001 ordinary shares at their present value, representing 5.03% of the company. State Street ranks as the fourth-largest asset manager globally.