Star Entertainment’s Expansion in Limbo as Regulatory Clampdown Stalls Growth

June 24, 2025 11:54 AM AEST | By Team Kalkine Media

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Star Entertainment’s Expansion in Limbo as Regulatory Clampdown Stalls Growth — Image source: shutterstock

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Highlights

Star Entertainment (SGR) faces halted expansion amid regulatory pressures.

Massive asset sales and international financing reshape business structure.

Reputation recovery key to re-entry in ASX200 growth trajectory.

Star Entertainment Group (ASX:SGR) is navigating a transformative phase, facing regulatory headwinds that have sharply redefined its growth strategy. Once celebrated for landmark projects like Brisbane’s Queen’s Wharf and enhancements to Sydney properties, the company’s trajectory has shifted dramatically following a string of compliance failures uncovered in late 2021.

Severe breaches in anti-money laundering and fraud protocols led to wide-reaching probes by AUSTRAC and state regulators. The fallout was swift: executive resignations, public scrutiny, and in September 2022, the loss of Star’s Sydney casino license. This pivotal moment signaled a regulatory domino effect across jurisdictions, effectively freezing Star’s ambitious development plans.

From 2023 to 2025, compliance took precedence. With fines totalling A$115 million across Queensland and New South Wales, Star redirected focus to remediation efforts. The financial damage was stark—by December 2024, the company posted a net loss of A$302 million against A$650 million in revenue, with liquidity dipping to just A$78 million. To bolster cash reserves, Star initiated emergency asset sales exceeding A$127 million, including prized venues like the Sydney event centre and parts of the Queen’s Wharf venture.

In early 2025, a dramatic shift occurred. U.S.-based investors Oaktree and Bally’s Corporation stepped in with combined financial backing of A$950 million. Bally’s structured a convertible note deal potentially handing it 56% control—pending regulatory approval. These moves underscore how foreign capital is now central to Star’s turnaround, while authorities maintain tight oversight on future licensing and governance standards.

The company’s ASX listing came under further strain when trading was temporarily suspended in February 2025 after missing half-year result filings, amplifying investor concerns. Within the broader ASX200 landscape, such volatility raises questions about Star’s stability and future inclusion.

Public sentiment also weighs heavily. Media scrutiny, leadership upheaval, and recurring compliance issues have severely tarnished brand trust. New regulations in New South Wales—like card-only slots and a ban on cash play—aimed at curbing money laundering have further compressed margins.

As Star attempts to regroup, its roadmap involves satisfying all compliance mandates, completing its financing transition, and proving a consistent culture of transparency. The ability to regain growth momentum depends on re-establishing credibility with regulators, investors, and the Australian public alike. Until then, Star remains firmly in a regulatory holding pattern, awaiting a green light to re-enter the ASX200 growth conversation.

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