JPMorgan Exits Struggling Australian Casino Giant Star Entertainment
JPMorgan recently sold its 5.09% stake in Star Entertainment, according to a filing submitted to the Australian Stock Exchange. This development marks another setback for the casino operator, which has been under prolonged regulatory scrutiny for serious compliance violations.
Star Entertainment has faced significant penalties, including a AU$100m fine from the New South Wales Independent Casino Commission for money laundering lapses at its Sydney property. Additionally, a further AU$15m fine was imposed this October for ongoing compliance shortcomings.
In a filing signed by Star Secretary Jenni Yuen, the company clarified that it would adhere to regulatory rules allowing no individual to hold more than a 10% stake, as mandated by Liquor and Gaming New South Wales and the Queensland Office of Liquor and Gaming.
Star Entertainment Stock Continues to Plummet
Since early 2023, Star Entertainment’s stock price has nosedived, reaching a five-year low of AU$0.1950 per share, a stark drop from AU$4 in December 2020. Market recovery seems unlikely in the near term, as the company battles regulatory challenges and operational difficulties.
Crown Resorts, Star’s Blackstone-owned competitor, faces similar struggles in the Australian casino market. Both operators are contending with regulatory oversight and a decline in tourism, forcing cost-cutting measures and operational restructuring.
