The Star Entertainment Group has posted a steep net loss of AUD302 million (US$191.9 million) for the six months ending December 31, 2024. That marks a sharp reversal from the AUD9 million profit recorded during the same period a year earlier. The casino operator pointed to strict regulatory changes and softer consumer spending as major factors behind the decline.
Good to know
- Star’s revenue dropped 24.4% in the half-year to December 2024.
- Cash restrictions and mandatory carded play hit Sydney operations.
- Company secured AUD300 million investment from Bally’s and Mathieson-backed group.
Revenue for the group fell 24.4% year-on-year to AUD650 million. The company highlighted the impact of new operating reforms at its flagship Star Sydney casino, including mandatory carded play and cash restrictions, as key reasons behind the drop.
New South Wales laws now require all casino gaming to be done with tracked cards, effectively banning cash play. Star Entertainment says these rules don’t apply to pubs and clubs, creating an uneven playing field and hurting its Sydney venue’s competitiveness.
“The loss of market share across Sydney and Gold Coast properties has had a material impact on the business,” CEO Steve McCann said during a Tuesday briefing. “We are continuing to operate in very challenging conditions.”
The company’s domestic gaming revenue dropped 32% compared to the same time last year. Adjusting for the closure of Treasury Brisbane Casino, the decline was still 20%. Revenue from private gaming rooms fell 25%, main floor gaming dropped 16%, and non-gaming income slid 2%.
The group also reported AUD166 million in after-tax charges as part of “significant items.” These included write-downs tied to its stake in the Destination Brisbane Consortium, which manages the Queen’s Wharf Brisbane development. The new Brisbane casino, The Star Brisbane, began a phased opening in August 2024.
Additional charges came from refinancing costs, regulatory fines, and ongoing remediation work.
Star’s financial statement noted AUD98 million in available cash as of April 11. While its shares were suspended from trading in February for missing financial filings, that suspension will lift on Wednesday, according to the company.
To shore up liquidity, Star last week finalized a AUD300 million investment deal. The funding comes from Bally’s Corporation and Star’s largest shareholder, Investment Holdings Pty Ltd—controlled by the Mathieson family.
“We’ve been working very hard on establishing additional liquidity to allow the company to continue trading,” said McCann, adding that the business remains under pressure but is actively trying to stabilize.
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