The Star Entertainment Group Limited (ASX:SGR) has withdrawn its bid to merge with Crown Resorts Limited (ASX:CWN) after a royal commission in Victoria heard Crown had been involved in illegal conduct. Star Entertainment " which operates the Star casinos in Sydney and on the Gold Coast, and Treasury Brisbane" submitted a merger proposal to its main rival in May [1]. If successful, it would have created a $12 billion gambling giant.

But on July 23, 2021 it told the ASX that "issues raised at Victoria's Royal Commission into Crown Melbourne have the potential to materially impact the value of Crown, including whether it retains the licence to operate its Melbourne casino or the conditions under which its licence is retained". Star said the "uncertainty surrounding Crown is such that The Star is unable to continue at the present time with its Proposal in the form as announced on 10 May 2021". In response, Crown Resorts issued a note to the ASX which said it remained "willing to engage with The Star in relation to a potential merger" on terms acceptable to both parties.