Oct 4 (Reuters) - U.S. bank JPMorgan Chase & Co ( JPM )

has become a substantial shareholder in Star Entertainment

, an exchange filing showed, as shares of the embattled

Australian casino operator have fallen sharply in last few years

amid liquidity issues.

JPMorgan ( JPM ) became a shareholder with a 5.47% voting power, the

filing showed on Thursday.

Star's shares have experienced a downtrend since 2022 after

facing multiple inquiries over anti-money laundering violations,

and have lost nearly 50% this year. The stock slumped 52% and

66% in 2022 and 2023, respectively.

Shares of the company were trading nearly 2% lower at

A$0.255, as at 0055 GMT.

In its delayed annual results posted last week, Star stated

that it might offload assets for ongoing restructuring

activities and address outflows related to regulatory matters.

The gaming firm's corporate lenders had also agreed to

provide a new facility of up to A$200 million ($137.00 million)

with an immediate A$100 million injection.

Earlier this year, Australian asset manager Perpetual

increased its stake in the cash-strapped company.

Prior to which, Star claimed that Hard Rock Hotels & Casinos

was considering a bid, but the Florida-based chain denied any

involvement in a takeover bid.

Star's future currently hangs in the balance after an

inquiry found the casino operator had been going through issues

around its leadership and culture, and that it remains unfit to

operate its Sydney casino.

Last week, Star responded to the New South Wales regulator's

show-cause notice, addressing its suitability to hold a casino

licence.

($1 = 1.4599 Australian dollars)