• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Friday 30 May 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
No Result
View All Result

Editorial – The waiting game

Ben Blaschke by Ben Blaschke
Wed 26 Feb 2025 at 14:56
Editorial – The waiting game
25
SHARES
629
VIEWS
Print Friendly, PDF & Email

Recent rumors suggesting that US private equity giant Blackstone could make a move to acquire Australia’s ailing Star Entertainment Group echo similar talk that has been doing the rounds across the industry over the past few months, particularly since Star revealed that it is on the brink of going bust.

Such an acquisition may have once seemed fanciful, but it is indeed looking increasingly likely – not only because of what would be a massively cut-price deal but also because it makes a lot of sense for all parties.

Recall that it was Blackstone who bailed out Crown Resorts back in 2022, and while that deal might not have quite worked out the way Blackstone envisioned it – not yet at least, given the substantial losses Crown continues to notch – the opportunity to take ownership of Australia’s two largest casino operators may be too good to refuse.

There are, of course, some questions to be answered, such as whether or not regulators in Sydney – home to The Star Sydney and Crown Sydney – would be happy to revert back to a monopoly ownership model, especially considering that increased competition was how the former state government originally sold the idea of a second Sydney casino license on issuing Crown’s a decade ago.

Yet the fact that Blackstone has already passed probity gives it a considerable head start, not to mention the allure of the group’s substantial resources at a time when many other companies may not have the financial clout to ride out any short-term pain.

From Blackstone’s point of view, and assuming it believes Star’s current run of negative cash flow can eventually be turned around (which is no certainty given current operating conditions), picking up the pieces of a fallen Star seems to make perfect sense.

One, it would undoubtedly acquire the company for cents on the dollar, which in itself may be seen as a low-risk opportunity. Two, by acquiring what’s left of Star rather than buying out the current existing entity, Blackstone would likely avoid having to pay any of Star’s impending regulatory fines, such as the one yet to be imposed by AML watchdog AUSTRAC. Remember that Blackstone has paid out more than US$300 million in fines and settlements in relation to Crown’s historical failures since assuming control two-and-a-half years ago.

And three, this may be the one avenue through which Crown can obtain a license to operate poker (slot) machines at its Sydney casino, given that The Star Sydney currently holds an exclusive license for their use (not including the state’s pubs and clubs).

It is, of course, no fait accompli that Star will bite the dust – right around the time of writing it was revealed that funds linked to Oaktree Capital Management had put forward a proposal to acquire the company’s debt from lenders, which could serve as a last-minute lifeline. But either way, expect Blackstone to be keeping a close eye on proceedings.

Tags: AustraliaCurrent IssueEditorialThe Star
Share10Share2
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian gaming industry. That’s quite a wide-reaching question with dozens of moving parts, but it got me thinking specifically about how...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry and why the latter is vital in winning over sentiment. When I was corresponding with this publication’s Managing Editor Ben...

Editorial – Knife’s edge

Editorial – Knife’s edge

by Andrew W Scott and Ben Blaschke
Tue 29 Apr 2025 at 15:14

Thailand’s Entertainment Complex journey is at a critical point, with the success or failure of the initiative to be determined by decisions made over the coming months. The common narrative now appears to be that legislation governing development of the...

A Baccarat perspective – Part 2

A Baccarat perspective – Part 2

by Ryan Hong-Wai Ho
Tue 29 Apr 2025 at 13:03

The first part of this series, published in the April issue of IAG, discussed the rise of baccarat in Macau’s gaming industry. Building on that discussion, Ryan Ho continues to examine the latest betting options shaping this iconic casino game....



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English