Reports are circulating that Blackstone could be about to prepare a bid for The Star Entertainment Group.
The move would be prompted by Star Entertainment entering administration, according to reports, as uncertainty around the future of the major casino operator continues to escalate.
Nonetheless, there could still be friction to any potential Blackstone takeover, from the New South Wales regulator due to fears of a monopoly being built over the country’s gambling sector.
Any obstacles over a future deal for Star Entertainment may well be overcome given that it is a last resort for the operator in Australia as it faces financial turmoil.
Most recently a second report from Adam Bell, a lawyer appointed by the NSW Independent Casino Commission, elevated jeopardy surrounding Star Entertainment’s financial predicament.
The report played a key role in “validating the concerns that prompted the second inquiry”.
It also caused Star to request a trading halt on the Australian Stock Exchange, as it continues to navigate a period of compliance challenges.
NICC Chief Commissioner, Philip Crawford, stated after the report’s release: “The Bell Report reveals a company that had not moved quickly enough to address the governance and cultural concerns raised in the first Bell Report.
“It has only very recently turned its attention to dealing with challenges that should have been prioritised earlier.”
In 2022, Blackstone significantly strengthened its footing in the Australia casino by acquiring Crown Resorts, which marked the largest transaction to date for the firm in Asia Pacific.
The deal was valued at around $9 billion, and under the new ownership Crown Resorts streamlined its gambling and leisure portfolio, including the sale of its 20% stake in the Nobu restaurant and hotel chain.
Blackstone, the private equity owner, is said to be steering Crown Resorts towards growth in the Australian and Asian markets.
At the time of the deal, Chris Tynan, Head of Real Estate Australia, Blackstone, underlined the firm’s appetite for the sector by emphasising it is “a great opportunity that plays to Blackstone’s strengths”.
One of the key elements that is likely enticing for Blackstone when it comes to an acquisition of Star Entertainment is the operator’s strong footprint in the poker sector.
The potential to expand the poker machines across the firm’s Crown Resorts could be significant in why the deal is so enticing to Blackstone.
Crown and Blackstone recently deepened their focus on the Australian market, as it announced the sale of Crown London Aspinalls, an exclusive private members’ casino in London’s Mayfair.
