Additionally, the company only stopped dealing with Suncity and Chau when he was arrested in 2021, despite being alerted about potential AML risks as early as 2019. In court filings, Star admitted that from 2018 to 2021, at least $1 billion came from junkets known to pose "higher" than normal AML risks. Much of the shortcomings outlined in the investigation relate to Star’s dealings with Chinese-linked junket operators. Chief among them was the infamous Suncity Group, whose former chairman Alvin Chau is currently serving an 18-year prison sentence in Macau on illegal gambling charges. The deal falling over would leave Star saddled with those costs, as it attempts to turn its business around with the backing of Bally's.
Star is looking for a financial lifeline to stave off collapse after it was mired in a scandal involving criminal infiltration and money laundering in its Queensland and New South Wales casinos. Shares in struggling casino giant Star Entertainment have plummeted after a brief trading halt was lifted, as the company searches for a financial lifeline by the end of the day. Struggling casino operator The Star Entertainment Group has warned it is facing a "critical" liquidity challenge as it tries to stem major revenue losses flowing from the introduction of mandatory carded play and cash limits. Star did not name the parties that are expected to provide an offer of financing, but it has confirmed previously that US finance giant Oaktree has tried to buy out Star’s debt from its lenders. More than 8000 jobs hang in the balance as teetering casino operator Star Entertainment is on the brink of financial collapse, with its board in last-ditch talks late on Friday to find the cash needed to keep the company afloat. While assets like hotels and carparks could be sold to raise cash, voluntary administration and a shareholder wipeout remain a "high likelihood", Blackcoin said Morgans Financial analyst Leo Partridge.