Latest rumors suggesting that U.S. non-public fairness large Blackstone may make a transfer to amass Australia’s ailing Star Leisure Group echo related discuss that has been doing the rounds throughout the business over the previous few months, significantly since Star revealed that it’s getting ready to going bust.
Such an acquisition might have as soon as appeared fanciful, however it’s certainly wanting more and more seemingly – not solely due to what can be a massively cut-price deal, but additionally as a result of it makes a number of sense for all events.
Recall that it was Blackstone who bailed out Crown Resorts again in 2022, and whereas that deal won’t have fairly labored out the way in which Blackstone envisioned it – not but at the least, given the substantial losses Crown continues to notch – the chance to take possession of Australia’s two largest on line casino operators could also be too good to refuse.
There are, after all, some inquiries to be answered, equivalent to whether or not or not regulators in Sydney – dwelling to The Star Sydney and Crown Sydney – can be pleased to revert again to a monopoly possession mannequin, particularly contemplating that elevated competitors was how the previous state authorities initially bought the concept of a second Sydney on line casino license on issuing Crown’s a decade in the past.
But the truth that Blackstone has already handed probity provides it a substantial head begin, to not point out the attract of the group’s substantial assets at a time when many different firms might not have the monetary clout to trip out any short-term ache.
From Blackstone’s standpoint, and assuming it believes Star’s present run of adverse money move can finally be circled (which isn’t any certainty given present working circumstances), selecting up the items of a fallen Star appears to make excellent sense.
One, it could undoubtedly purchase the corporate for cents on the greenback, which in itself could also be seen as a low-risk alternative. Two, by buying what’s left of Star fairly than shopping for out the present current entity, Blackstone would seemingly keep away from having to pay any of Star’s impending regulatory fines, such because the one but to be imposed by AML watchdog AUSTRAC. Keep in mind that Blackstone has paid out greater than US$300 million in fines and settlements in relation to Crown’s historic failures since assuming management two-and-a-half years in the past.
And three, this can be the one avenue by means of which Crown can receive a license to function poker (slot) machines at its Sydney on line casino, on condition that The Star Sydney at the moment holds an unique license for his or her use (not together with the state’s pubs and golf equipment).
It’s, after all, no fait accompli that Star will chew the mud – proper across the time of writing it was revealed that funds linked to Oaktree Capital Administration had put ahead a proposal to amass the corporate’s debt from lenders, which may function a last-minute lifeline. However both approach, count on Blackstone to be conserving a detailed eye on proceedings.
Please fill out the shape to ship a message to the CDC Gaming Reviews group. Alternatively, you possibly can ship an e mail to the handle on the footer of every web page.
© 2025 CDC Gaming
