Star casino facing collapse after $750m bailout bid fails
Star casino is on the verge of collapse again after a $750m cash lifeline fell through putting the casinos in Sydney, Brisbane and the Gold Coast at risk of closure within a week.
NSW
Don't miss out on the headlines from NSW. Followed categories will be added to My News.
The Star is on the verge of collapse again after a $750m cash lifeline fell through, putting the casinos in Sydney, Brisbane and the Gold Coast at risk of closure within a week.
The problem-plagued casino company told the ASX on Wednesday the refinancing proposal with asset manager Salter Brothers “has now been withdrawn”.
That leaves embattled chief executive Steve McCann with a possible bailout from US casino giant Bally’s as the last remaining chip on the table to save The Star.
In its statement, The Star said “there remains material uncertainty as to the group’s ability to continue as a going concern”.
A key player in that rescue deal is current Star shareholder Bruce Mathieson, an Aussie billionaire publican who has offered $50m to support the deal with Bally’s.
Mr McCann needs to move quickly to secure the deal - it is understood the casino company has just enough cash to keep going for another week.
It has failed to lodge its half yearly financial report “in the absence of an appropriate refinancing solution,” it said.
The deal with Salter Brothers needed to be signed on Monday and would have seen The Star hand over its stake in the new complex at Queen’s Wharf in Brisbane.
After it fell over, The Star told the ASX: “The company continues to explore liquidity solutions that might materially increase the group’s liquidity position in the medium term, including engaging with Bally’s Corporation in relation to the proposal received on 10 March 2025.”
The Bally’s deal would give The Star $250m in return for a 50.1 per cent stake and $50m from Mr Mathieson. The group would not be split up and would keep control of all three casinos with Bally’s open to a bigger deal.
Bally’s chairman Soo Kim has previously said the deal is not subject to due diligence and could be pulled off quickly.
“It is not too late,” he said. “We can do this. Every deal we’ve done, people say ‘There’s no value there, or it is too hard’. We are usually the buyer of last resort.”
The Star has been plagued by money troubles after a NSW Government inquiry found it ignored money laundering activities in high roller areas.
Originally published as Star casino facing collapse after $750m bailout bid fails
Fed-up doctor rant every Aussie must hear
A fed-up Aussie has unleashed on a state Premier after basically working 28.5 hours straight with only a couple of short breaks.
Sydney councils falling far behind on housing approval targets
A growing divide is emerging between the Sydney councils hitting housing approval targets and those falling far behind, with most underperforming months into the federal government’s ambitious new housing initiative. See how your council ranked.