Blackstone eyes Star Entertainment takeover, but Aussie approval uncertain
New York-based private equity giant Blackstone is reportedly considering acquiring the struggling Australian casino group, Star Entertainment. The potential deal is seen as a strategic move to capitalise on The Star’s poker machine assets while the company battles mounting financial difficulties.
As of 31 December 2025, Star Entertainment held just AU$78 million (€47 million) in available cash, raising concerns about its ability to remain operational. The company has explored multiple options to boost liquidity but has yet to secure a definitive solution. Amid these uncertainties, the Australian Securities and Investments Commission (ASIC) is set to take action against former Star Entertainment directors on 10 February 2025.
With over $US1 trillion in global assets, Blackstone is well-positioned to absorb short-term risks. Notably, Star’s CEO, Steve McCann, previously led Crown Resorts, strengthening his ties with Blackstone. Sources suggest the firm may wait for Star to enter voluntary administration before making a move.
Acquisition Interest Grows
Meanwhile, a Macau-based investor Xinchun Wang has acquired a 6.52 percent stake in The Star, becoming the second-largest shareholder. However, his involvement has done little to ease concerns over the company’s financial survival. With no immediate solutions in sight, Star remains in a vulnerable position.
Blackstone’s potential takeover could be a game-changer for the ailing operator. The firm has already demonstrated its commitment to Australia’s gambling industry, having acquired Crown Resorts in 2022 for AU$8.9 billion (€8.5 billion), its largest investment in the Asia-Pacific region. This deal included casino properties in Melbourne, Perth, and Sydney. In 2023, Blackstone injected nearly AU$500 million (€480 million) into Crown to stabilise its operations amid regulatory challenges and a declining high-roller clientele.
Officials may block the move
Blackstone’s latest quarterly earnings report highlights the growing significance of its business expansion, according to the Wall Street Journal. The private equity giant also acquired Australian data centre operator AirTrunk for $24 billion last year, reporting a net income of $703 million—marking a significant rise from $151.8 million the previous year, as revenue more than doubled.
Despite Blackstone’s financial strength and industry expertise, its potential acquisition of Star Entertainment may encounter regulatory hurdles. The New South Wales government has previously resisted allowing a single entity to control both of Sydney’s major casinos. However, with The Star on the brink of collapse, regulators may be forced to reconsider their stance.
Concerns over competition could complicate the approval process, but The Star’s worsening financial crisis might encourage government flexibility. If Blackstone secures regulatory approval, the deal would grant it a dominant position in Australia’s casino industry, further consolidating its influence in the sector.
