Star was expected to run out of cash this week but managed to pay its 8000 staff in recent days. The New South Wales Independent Casino Commission (NICC) found that the casino operator had not done enough to address "governance and cultural concerns" raised in a 2022 inquiry that found it unfit to hold a licence. A Queensland inquiry found The Star actively encouraged people banned from gaming in Victoria and NSW to gamble at its casinos in the Sunshine State.
Unless Wang has been given regulatory approval to move beyond 10 per cent of the casino group (and Blackjack strategy online there is no suggestion he has), he can’t contribute to a recapitalisation of the company. If he had been lined up or approached by the Star board as part of the rescue attempt, the company would need to have disclosed any deal or association. Star shares have been suspended from trade on the Australian Securities Exchange since March after the company failed to submit its half-year accounts. Embattled luxury casino hotel packages 2026 group Star Entertainment has secured a $300 million lifeline from US gaming giant Bally's, which has made a specialty of picking up "distressed" casinos.
It since has been selling neighbouring properties in Southbank, bought by Crown when James Packer was still running the outfit. US investment giant Blackstone bought Crown in 2022 for $8.9 billion with grand plans for a refurbishment and expansion, which appears to have come to nought. Investors were spooked by a financial performance that revealed an operation haemorrhaging cash with little prospect of an immediate improvement.
I'm not sure why the Grattan Institute cares whether people are dying with large super balances? I mean, wasn't everyone pointing the finger at retirees for spending more than other generations (unfairly in my view - and no, I'm still working). US financial giant Oaktree also offered to refinance Star’s debt if it could reach agreement with Star lenders owed more than $450 million, and provide up to $650 million of fresh funding. The deal was subject to numerous conditions and there was no guarantee it would progress, Star said. This includes its major shareholder, pokies billionaire Bruce Mathieson, offering to buy its Gold Coast casino.
The half-year accounts, originally scheduled for release in February, showed a steep decline in revenues, which Star attributed to the introduction of stricter payment requirements at its Sydney online casino clothing guidelines. The rules, which started in October, force patrons to use a pre-paid card, which makes gambling more difficult and reduces the risk of money laundering. Shares in struggling Epicurean crypto casino giant Star Entertainment have plummeted on Friday after a brief trading halt was lifted, as the company searches for a financial lifeline to avoid collapsing.
Sign Up for Take StockInvestment news, stock ideas, and more, straight to your inbox. The Star is continuing to engage with the Joint Venture Partners and will provide an update if there are any material developments regarding the parties' respective interests in DBC and DGCC. However, Star and its JV partners were "unable to reach agreement on a number of outstanding commercial issues" relating to the deal. Revenues are down, with Star Entertainment reporting an unaudited $270 million in revenue for 4Q FY25, down 31% on 4Q FY24. "[It's] loaded with $650 million of its own debt, is still less than 50 per cent operational and requires hundreds of millions of dollars in additional capital expenditure to complete," Mr Mayne noted.
The remaining funds will be paid either following a shareholder vote, or will be split into two payments before October 7. Bally’s, Royal Reels loyalty points redemption which operate’s 19 casinos across the US, will get a 56.7 per cent stake in Star. As Star’s search for a white knight steps up, a potential newcomer to the Australian gaming industry has taken a look at its casinos. Airtasker will look to expand rapidly overseas after a new capital raise and an expanded strategic partnership. DBC's total current drawn balance on the debt facility is approximately $1.4 billion.
Star Entertainment needs to lock in a multimillion-dollar funding package before the start of April or faces the prospect of voluntary administration. The terms are expected to be finalised as early as Monday, following a weekend of negotiations. Sharemarket rallies after US futures, Asian stocks lift; Deutsche Bank first to tip 50bps May cut; Star saved as Bally’s swoops in; $A holds near five-year low. The distressed Star Entertainment will pay up to $10 million to a US hedge fund for a debt facility that was never used, or signed-off on. The businessman’s visit, his second in two months, comes as the group’s Hong Kong backers are also in the country to take ownership of its Brisbane complex. The gaming giant had called off negotiations on an early proposal after finding itself unable to agree on key details of a plan to sell its Brisbane precinct. Real estate (-1.8pc), financials (-1.7pc) and tech (-1.5pc) led the losses in the first 15 minutes of trade.
The longer-term investment case is clouded by the threat of Crown Sydney, liquidity risk and tightening regulatory measures. This article explores the once monopolistic establishment and why we believe its trading over 50% below its fair value. Star Entertainment’s shares will remain suspended for at least another week as the Ripper Casino iGaming operator’s chief executive, Steve McCann, tries to secure the last of a series of deals critical for the company to stay solvent.
