Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioStar Entertainment Group‘s plan to sell its 50% stake in its Queen’s Wharf Brisbane casino has collapsed, causing the company’s stock to drop to a record low and deepening its financial crisis.
The troubled casino operator announced that negotiations with Hong Kong-based partners Chow Tai Fook Enterprises and Far East Consortium have fallen through after the investors, who own 25% each, declined to extend the deal deadline due to commercial issues.
The deal’s deadline was extended to July 31. In a statement, Star stated that it tried to extend the deadline again until August 6, but the two partners rejected the proposal:
“As of this morning, the parties have been unable to reach agreement on a number of outstanding commercial issues which in turn prevent the finalisation of long form documents.”
As a result, Star must repay the investors A$10 million by August 6 and another A$31 million by September 5. The payments include proceeds and equity contributions that have already been invested in the property.
Additionally, Star is responsible for approximately A$200 million in future equity contributions and future equity injections to cover its share of the project’s debt, totaling A$1.4 billion, which is due for refinancing in December.
The deal’s collapse was foreshadowed in June. Then, Chow Tai Fook and Far East Consortium had threatened to “walk away completely” from the project.
Investor Reaction Turns Bleak
Investors reacted sharply to the announcement. Star’s stock declined by more than 17%, hitting a record low of A$0.09. The sharp tumble was the most significant decline since June 23.
The massive sell-off adds to a brutal run for Star’s stock. Its share price has declined by over 51% since the beginning of the year, and in the past 12 months, it has plummeted by 84%.
Analysts warn that the December refinancing of the company’s debt obligations could be critical to its survival.
Financial and Operational Troubles Mount
The collapse of the Brisbane property is the latest blow for Star, which has faced a troublesome two-year stretch.
The company has been under intense scrutiny after revelations of extensive anti-money laundering (AML) and counter-terrorism compliance failures. A trial on the accusations started this past February.
Furthermore, regulators in New South Wales (NSW) and Queensland exposed systematic governance failures. An investigation by Adam Bell, a lawyer appointed by the NSW Independent Casino Commission, caused Star to request a trading halt on the Australian Stock Exchange.
NSW fined Star A$100 million, forcing the company to raise over A$800 million in capital and cut hundreds of jobs.
Additionally, Australia’s financial crime watchdog, AUSTRAC, proposed a fine of up to A$400 million over AML breaches. Star warned that a penalty of over A$100 million could drive the company into bankruptcy.
The operator has also faced a significant decline in visitation, especially from high-roller international customers, and revenue.
Bally’s Steps In—but Trademark Trouble Looms
Star secured a potential lifeline in April. Bally’s Corp. agreed to pay A$300 million for a 56.7% stake in the troubled operator.
The deal helped stabilize Star as Bally’s moved quickly to inject the initial payment of A$100 million. However, the threat of AUSTRAC’s proposed fine still looms over the company and could force Bally’s to reconsider its position.
Adding to the uncertainty, Bally’s encountered an unexpected roadblock: it has been unable to register the “Bally’s” trademark in Australia.
The US company had intended to reinvigorate Star’s casinos by changing their name. However, a Sydney lawn bowling club known as “The Bally” has already trademarked the name and prevented Bally’s Corp. from registering it.
