Hard Rock International has denied it is interested in taking over embattled Star Entertainment, following the casino operator announcing it had received interest from multiple parties including Hard Rock Hotels & Resorts (Pacific).

Hard Rock said in a media statement: “Hard Rock International would like to address recent reports regarding a proposed purchase of the Star Entertainment Group Limited (Star) in Australia. We want to make it clear that Hard Rock International is not involved in, nor has it authorized, any discussions, activities or negotiations on its behalf in connection with a proposed bid for Star. Hard Rock International has similarly not authorized the use of the Hard Rock brand in connection with any proposed bid for Star by any third party. 

“Our brand is built on a legacy of integrity, excellence, and a commitment to our guests, partners, and team members worldwide. Any misuse of the Hard Rock name in unauthorized business dealings is taken very seriously. We are currently investigating this matter and will pursue all necessary legal actions to protect our brand and reputation. 

“We urge stakeholders and the public to rely only on official communications from Hard Rock International for accurate information regarding our business activities and partnerships. 

Hard Rock runs more than a dozen casinos in the United States and venues in 70 countries around the world. Star, owns casinos in Sydney, Brisbane and the Gold Coast.

Plot thickens over Hard Rock bid

The Australian reports that Brisbane developer Patrick Farrugia has using the Hard Rock name in talks with Star.

“It is understood Mr Farrugia has been the recipient of cease and desist letters from Hard Rock International about using its name without authorisation,” the newspaper said.

“Mr Farrugia’s links with Florida-based Hard Rock appear to be limited to his involvement as an investor in the now defunct Hard Rock Cafe in Surfers Paradise.”

The Star’s shares ended 20% higher at A$0.54 on Monday following the news Hard Rock was interested in the casino, but fell almost 8% on Tuesday following the announcement by Hard Rock.

The Australian Financial Review said: “The most logical buyer surely remains Blackstone, owner of Crown Resorts. Its existing operations give it synergies that no other bidder can match, and having recently won back its licences in NSW and Victoria, it would have a huge regulatory head start on any rivals.”

“While the market has reacted positively to the speculation about an acquisition by Hard Rock, Star Entertainment Group’s 73,000 shareholders will have a large say in the outcome of this,” said Ben Williamson, co-founder and co-CEO at investor marketing platform InvestorHub.

“Star will need to engage its entire base to ensure any takeover is successful.”

Damning final submissions

The Star said it remains focused on its remediation activities in NSW and Queensland and participating in the Bell Two Inquiry.

Adam Bell SC is running the inquiry at the request of the Independent Casino Commission to assess whether Star had done enough to win back its Sydney licence.

Bell’s first report in 2022 found Star was unsuitable to hold its licence, describing its operations as “a case study of unethical conduct and cultural failure” that may have evaded taxes and facilitated $900 million of banned gambling transactions.

If Star is found unsuitable at the end of Bell’s second inquiry, its licence could be permanently revoked, resulting in the casino being shut down.

Assisting counsel Caspar Conde said yesterday in closing submissions there was no evidence to suggest Star Entertainment would ever be fit to hold a Sydney casino licence.

“The Star entities’ contention that they are suitable with licence conditions and the [special] manager contrasts with the unqualified acceptance by every director of Star Entertainment that Star Entertainment is presently unsuitable,” Mr Conde said.

“In terms of present suitability, our submission remains that you would conclude that the Star and Star Entertainment are not presently suitable regardless of any proposal in relation to licence conditions or the manager (continuing to supervise the company).”

He said there was no clear time the inquiry could be satisfied that Star “will or is likely to become suitable”.

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