Star’s Macau investor to face a probe by Liquor and Gaming NSW if his stake passes 10pc  

The NSW Independent Casino Commission says a probity investigation into Macau investor Wang Xingchun will be required if his stake in the troubled Star Entertainment passes 10 per cent.

NSW’s powerful casino regulator has signalled it will conduct a probity investigation into a mystery Macau investor if his stake in Star Entertainment rises above 10 per cent, as the casino operator battles to avoid financial collapse.

Wang Xingchun now holds 6.52 per cent of Star after buying 28 million shares on Monday for just over 11c each.

Mr Wang has spent more than $30m amassing more than 186.3 million shares since September 2024. That makes him the second-biggest shareholder in the company behind pub billionaire Bruce Mathieson, who holds about 9.5 per cent.

Far East Consortium International and Chow Tai Fook Enterprises, the Hong Kong-based partners in its Queen’s Wharf precinct, both have a 6.33 per cent stake.

A spokesman for the NSW Independent Casino Commission (NICC) said that under the state’s Casino Control Act, regulatory approval was required for shareholdings of 10 per cent or more in a casino operator.

The spokesman said Liquor and Gaming NSW would be required to conduct comprehensive probity investigations on behalf of the NICC, assessing a range of financial and non-financial factors.

“Probity investigations are conducted under the Act and consider a person or entity’s financial background, whether they are of good repute and also consideration of their business associations,” the spokesman said.

Liquor and Gaming NSW employed various methods to investigate a person or entity, and these “investigations can be complex and protracted, depending on the complexity of affairs or risks identified”.

“The NICC will then determine whether to approve a person or entity as a close associate of a casino operator,” the spokesman said.

Star Entertainment Group chief executive Steve McCann

The Australian has not been able to contact Mr Wang, who lists his address as an apartment in a luxury residential tower building in Macau – a gambling enclave near Hong Kong where some of the world’s biggest casino companies operate, including Wynn Resorts, Las Vegas Sands and MGM.

Mr Mathieson said that he did not know who Mr Wang was, nor why he was building a stake in the company.

Star shares slumped more than 40 per cent last week after the company said that it had burnt through more than $100m of its dwindling cash reserves in just three months.

The stock has recovered 12 per cent this week to close at 14c on Thursday, as speculation mounted that Mr Wang would increase his stake further.

Mr Mathieson said he was not aware of any links between Mr Wang and Star’s Hong Kong consortium partners, but reiterated that if the Macau investor wished to increase his stake he would face probity checks by Australian ­regulators.

Bankers say Mr Wang’s voting stake could be exercised as a block with Star’s Queen’s Wharf joint venture partners.

This represents 19.2 per cent, which is more than enough for a blocking stake, or it could give them a say in the event of an opportunistic takeover of Star.

On current projections, Star will run out of money within. The NSW government’s determination to push ahead with tough gaming rules, including mandatory cashless gaming, has slashed revenue.

Star said on Thursday that it was continuing to hire staff, including compliance and remediation roles, despite external concerns it may have to appoint administrators.

“Despite the Star’s significant challenges, we are continuing to operate and provide full services to all our members and guests,” a Star spokesman said. “This includes, where necessary, targeted recruitment to fill vacancies in specific areas of high demand despite our continued focus on cost reduction overall. We also need to fill specific roles dedicated to our remediation and cultural uplift programs which are critical to deliver the group’s agreed remediation plan.”

It is understood hotel bookings and meetings at Star’s new $3.9bn Queen’s Wharf precinct in Brisbane are continuing to increase despite uncertainty about the company’s future.

The Star Grand Hotel at Queen’s Wharf received 25,000 check-ins between August and the end of December, while 122 events were held at the precinct’s convention centre.

Star chief executive Steve McCann earlier this week pleaded for more “time and support” to reset the company, saying “it’s complicated” but he was confident it could recover.

“For Star as a corporate entity to get through this, and for shareholders’ and creditors’ interests to be fully protected, and for our employees to have the job security they’re after, requires a meeting of minds of a significant range of stakeholders – it’s complicated,” Mr McCann said.

Star last year announced it would sell assets in an attempt to raise much-needed cash.

Star last September sold its interest in the Treasury Casino building to Griffith University for $67.5m. The sale of the nearby Treasury hotel and carpark is still pending.