Suitors are circling the embattled casino group

Speculation has swirled that the executive brought in to to rehabilitate Crown after it was found unfit to hold its casinos licences, Steve McCann, could repeat the magic at Star. Whether he is keen to chance his luck again at cleaning up another casino group is another matter.

If ever there was a corporate mess, Star is it. It is financially and regulatorily challenged with no certainty that it will regain any of its three licences in Sydney, the Gold Coast and Brisbane.

Hard Rock isn’t the only player attracted to Star. There has been some speculation that Blackstone, which owns the Crown casino once controlled by James Packer, might also take a look at its main Australian competitor.

It is an obvious candidate given such a combination could dominate the Australian casino landscape and generate synergies. But Blackstone, which overpaid for Crown, has bitten off plenty and still has much to digest, so it may not have the stomach or the approval from its investors to double down here.

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Star Entertainment’s largest shareholder, and arguably a natural owner for the casinos, is pub baron Bruce Mathieson. He could partner with someone or attempt to cherry-pick one of the casinos inside the Star.

Whatever happens, his near 10 per cent stake will be pivotal in the outcome of any corporate move on Star.

Any offer for all or parts of Star would need to be conditional on the company being found suitable to hold its licences.

And while the betting is that this is the most likely outcome, it is by no means certain. In the near term, Star in NSW will be found unsuitable currently and it will retain an external manager who will hold the licence until its rehabilitation is complete.