Australian casino operator Star Entertainment has reported a massive $302 million net loss for the six months ending 31 December 2024.
The loss, lodged with the ASX, marks a sharp downturn from the $9 million loss posted during the same period last year.
Revenue also dropped by 25 per cent to $650 million, driven by a 32 per cent fall in domestic gaming takings.
The result highlights the company’s deepening crisis amid tightening regulation and declining customer activity.
Star Entertainment, Australia’s Biggest Casino Operator, Posts $302 Million Half-Year Loss [Image collected from: micenet]
Rescue Deal Brings American Ownership
In a bid to avoid collapse, the company has accepted a $300 million rescue deal from American casino operator Bally’s Corporation.
The agreement gives Bally’s a controlling 56.7 per cent stake in the Australian-listed group.
Bally’s provided an immediate $100 million in funding, $33 million of which is convertible into shares at 8¢ each.
A further $200 million will be injected, pending regulatory approval, in the form of convertible notes.
Billionaire Bruce Mathieson, the company’s largest shareholder, will also invest more than $50 million in the company.
Combined, the Bally’s and Mathieson injection has kept the casino group afloat—for now.
Financial Uncertainty Still Looms
“There remains material uncertainty regarding the group’s ability to continue as a going concern,” Star said in its financial report.
Despite the rescue deal, the company held just $98 million in available cash as of 11 April.
Its shares, suspended since March 3, remain frozen at 11¢ while the ASX reviews Star’s future.
The company continues to negotiate with lenders and regulators as it scrambles to stabilise its balance sheet.
Revenue Plunge and Massive Write-Downs
The financial results show total revenue fell 16.4 per cent to $724 million compared to the prior corresponding period.
Star blamed the fall on “casino operating reforms” in Sydney and a shrinking market share on the Gold Coast.
A major hit came from the Queen’s Wharf development in Brisbane, which was written down by $107.6 million.
This followed a previous impairment of $602.2 million last financial year.
Cost-Cutting and Asset Sales Ramp Up
To stay solvent, Star has sold off non-core assets and intensified its cost-cutting program.
It completed the $60 million sale of The Star Event Centre in Sydney to Foundation Theatres earlier this month.
In September, it offloaded the Treasury Brisbane Casino Building lease to Griffith University for $60.5 million.
Star also confirmed the successful delivery of $100 million in annual cost reductions.
The company is now searching for additional savings and limiting capital spending to $80 million this year.
Regulatory Pressure Continues
Star’s troubles extend beyond its balance sheet.
The company remains under intense regulatory scrutiny following repeated breaches involving money laundering and governance failures.
In Queensland, the Attorney-General has approved Star’s revised remediation plan for its Gold Coast and Brisbane casinos.
The plan outlines compliance reforms and long-term oversight commitments.
Star has also submitted the plan to New South Wales authorities and is working closely with regulators there.
A Long Road to Recovery
The Bally’s deal may have prevented immediate insolvency, but Star faces a tough path forward.
The company must now rebuild trust with regulators, investors, and customers while navigating ongoing legal and financial challenges.
Market analysts say it’s too early to call Star’s turnaround a success.
The casino operator remains vulnerable to regulatory setbacks, sluggish revenue, and investor caution.
Star will rely heavily on Bally’s operational expertise and financial muscle to support its recovery.
The future of the iconic Australian casino group now rests in foreign hands.
