The Star Entertainment Group Ltd remains at risk despite international efforts to save the Australian gambling firm.
In its delayed H125 (31 December 2024) financial statement – which was supposed to come out on 28 February but was postponed amid financial struggles – the company reported a net deficit of AU$302m (£145m) over the last six months of that year.
Due to the failure to report its financials in time, the firm had its shares suspended from the ASX earlier this year. Now that the results have finally been published, the challenging financial times facing the firm have been fully revealed.
H125 Group revenue plummeted 25% compared to the previous corresponding period (H124: $866m). Deteriorating trading performance brought EBITDA down by $26m, and overall trading in Q3 was down 9% across Group assets compared to Q2.
For Q3, The Star Sydney venue reported a decline in revenue by 8% QoQ. The casino was also affected by new regulations, with New South Wales limiting player spending and mandating cashless play across brick-and-mortar as part of a wider crackdown on money laundering.
To offset losses, The Star entered into an agreement to sell 50% of The Star Brisbane casino within the Queen’s Wharf precinct – a new land-based development following the closure of Star’s Treasury Brisbane venue and its subsequent sale to Griffith University for $67.5m.
Treasury Brisbane’s closure contributed to a 32% dip in H125 domestic gaming revenue, although the venue’s closure did also lead to group wide operating expenses falling 4%.
Still pending regulatory approval, The Star Brisbane stake will be transferred to existing partners Chow Tai Fook (CTF) and Far East Consortium (FEC) for a reported $53m to stabilise company balance sheets. There is also an agreed transitional period for The Star to remain the venue’s operator through March 2026 until a successor has been found.
As an additional exchange token, The Star will consolidate its ownership over its venue in Gold Coast by acquiring all CTF and FEC non-gaming stakes in the Star Gold Coast. This will give the company full financial control over the casino and hotel buildings, with the rights to develop the land further.
“We believe that once we optimise these operations and our strategy, our full ownership of these hotels will enhance our integrated offering and provide an opportunity to improve the performance of the business,” Steve McCann, Star Entertainment CEO, said.
As of 11 April 2025, The Star reported an available cash balance of $98m. Liquidity was also aided by a $100m reduction in annualised cost savings.
In an effort to save Australia’s second-biggest casino operator, Bally’s has swooped in to secure a $300m lifeline cash injection together with Investment Holdings Pty Ltd – with each investing $200m and $100m respectively. The first $100m were transferred to The Star on 9 April.
Subject to a shareholder agreement, Bally’s could assume control of The Star no earlier than June. The US gambling group has already approached Australian state regulators to apply for an approval, Reuters reported.
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