Star Entertainment rescue bid approved by Queensland government

A proposed rescue of Star Entertainment’s Queensland operations by a North American casino giant and an Australian pub baron has been waved through by the state government in Brisbane.

Queensland Attorney-General Deb Frecklington announced regulatory approval had been granted on Friday morning, after the Queensland Office of Liquor and Gaming Regulation found the US-based Bally’s Corporation and Investment Holdings, controlled by Australian billionaire Bruce Mathieson, were suitable entities to take over the embattled company.

Star Entertainment has faced extreme financial pressure for almost two years, linked in part to repeated breaches of anti-money-laundering and counter-terrorism laws.

Frecklington said the decision followed “careful review” of all material and the departmental investigation.

Minutes later, the NSW government announced it had also given approval to the two groups. However, The Star’s licence remains suspended in New South Wales, with a regulator-appointed manager having oversight over operations at the casino in Sydney.

Bally’s – which owns 19 casinos in the US – and the Mathieson family had been waiting on the approval to take control of the company as majority owners, five months after shareholders approved a $300 million deal.

Regulatory approval came days after the company’s existing management announced a host of job cuts as part of a major restructure.

The Queen’s Wharf casino in Brisbane’s CBD is in the process of being sold to Chow Tai Fook Enterprises and Far East Consortium, but still operated by Star Entertainment until at least March next year.

Star also owns and runs The Star Gold Coast at Broadbeach.

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