The Star Entertainment Group gets a much-needed loan. At least under certain conditions. Investors demand collateral and a strategic plan from the casino company.
There is a silver lining: Star Entertainment Group has found investors. They are willing to lend the company A$200 million (around €123.3 million). The financial injection is urgently needed.
In addition to regulatory problems, the casino operator is also plagued by financial worries. In FY23/24, Star Entertainment posted a loss of A$1.69 billion (€1.05 billion).
It remains to be seen whether the money will be enough. Strictly speaking, the money has to arrive first. Payment should be made in two installments. However, there are conditions, including the approval of the supervisory authority.
Star Entertainment must also submit a financial plan, which in turn must be approved by the investors. On top of that, the casino company needs to raise another A$150 million (€92.6 million).
One option would be a tax break. However, negotiations with the Queensland government appear to have failed. As Premier Steven Miles announced in a press conference, the company refused to waive bonus payments for board members.
