Star Entertainment Group could run out of cash within weeks, putting thousands of jobs and its major assets at risk. The company’s financial troubles continue to worsen, with its cash reserves depleting rapidly.
Cash Reserves Dwindle
Star Entertainment reported a sharp drop in cash reserves, plummeting by 46% between September and December 2024. The company now holds just $79 million in cash, down from $149 million three months earlier. Analysts warn the company may not survive past February.
Morningstar analyst Angus Hewitt warned, “The company would be lucky to make it to February 28.”
Heavy Fines and Reduced Revenue
The group has faced over $100 million in fines for licensing breaches, further straining its financial health. Declining gambling revenue has worsened its struggles, with fewer visitors at its Sydney, Brisbane, and Gold Coast casinos.
The company’s latest report cited “difficult trading conditions,” capital expenditure, legal fees, and a $15 million fine from the NSW Independent Casino Commission as key challenges.
Queen’s Wharf Project at Risk
Star’s $3.6 billion Queen’s Wharf project in Brisbane, which opened in August 2024, now faces uncertainty. The venue, with over 3,000 employees, may shut down if the financial crisis deepens.
Star’s largest stakeholder, pub tycoon Bruce Mathieson, warned, “Star Casino could go bankrupt or be bought within weeks.”
Job Loss Concerns
Queensland Premier David Crisafulli assured the public that the government prioritises protecting jobs. “I’m very confident regardless of the ownership… the focus has to be on making sure there’s jobs here,” he said.
Over 9,000 staff members work across casinos and related venues. Crisafulli reaffirmed the government’s commitment to workers rather than corporate interests. “We’re not in the business of being concerned about the corporate suits who sit around a company,” he said.
No Government Bailout Planned
Despite job security concerns, both Queensland and New South Wales governments have ruled out financial assistance. Queensland Treasurer David Janetzki confirmed talks but said a bailout was unlikely.
NSW Premier Chris Minns echoed similar sentiments, rejecting financial aid requests from leadership. “We are not providing financial support for the Star’s Queensland expansions,” Minns stated.
Business Under Pressure
Cash burn rate remains alarming. The company lost $70 million since September, with mounting debt and ongoing penalties. CEO Steve McCann emphasised efforts to find a solution.
“The focus is on saving jobs and providing a sustainable future for our 9,000 hardworking team members,” McCann said.
Star had previously sought financial support from Queensland’s Labor government before the October state election but was denied. The government doubted its ability to recover any bailout funds and opposed continued executive bonuses amid the crisis.
Potential Asset Sales
If no solution emerges, Star may enter voluntary administration or sell off key assets, including casinos in Sydney, Brisbane, and the Gold Coast.
Morningstar’s Hewitt added, “Star needs a more immediate solution, and we believe it is unlikely it can trade itself out of this predicament.”
Uncertain Future
Star Entertainment continues to face a financial storm, with cash reserves dwindling and limited government support. The company remains under heavy scrutiny as it seeks urgent solutions to avoid a historic corporate collapse.
