JPMorgan Chase & Co. has fully divested its stake in Australian casino operator Star Entertainment, as confirmed by recent regulatory filings with the Australian Securities Exchange (ASX). The bank had previously acquired a 5.47% voting equity stake in October 2024.

The divestment comes amid significant challenges for Star Entertainment:

• Government control of all three Star properties since 2022
• Ongoing anti-money laundering investigations
• Risk of losing The Star Sydney license
• Significant liquidity concerns
• Declining Chinese customer base

Recent Regulatory Developments:

• Gold Coast license hearing deferred to March 31, 2025
• Special manager appointment extended to June 31, 2025
• Required progress review scheduled for February 2025

The casino operator faces mounting pressure to address remediation matters while competing with regional gaming destinations like Macau and Singapore. Star Entertainment previously indicated it might consider asset sales to improve its financial position.

The rapid exit by JPMorgan, while unexplained, may signal continued uncertainty about Star Entertainment's near-term prospects as it works to resolve regulatory issues and stabilize its operations.

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