for early access to the latest igaming videos!
and get the latest igaming news first!
Star Entertainment has managed to shrink its annual loss, but the Australian casino operator is still burning through a difficult recovery in which weaker gambling revenue, substantial debt and an unresolved regulatory battle leave little room for error.
Loss Narrows, but Misses Market Expectations
The company recorded a statutory net loss after tax of A$307.3 million for the financial year ended June 30. That was an improvement on the A$427.9 million loss reported a year earlier, though it was considerably worse than the roughly A$180 million loss expected by analysts tracked by Visible Alpha.
Investors responded cautiously. Star shares were down 3.8% during Monday trading, compared with a decline of about 0.2% for Australia’s broader benchmark index.
The numbers expose the uncomfortable position Star remains in. Reducing the size of its losses is one part of the turnaround, but the company is still contending with soft table-gaming revenue in New South Wales while trying to control costs, service external debt and deal with regulatory action that could carry further financial consequences.
Regulatory Problems Still Hang Over the Business
Star’s problems stretch back years rather than quarters.
The casino group has faced sustained scrutiny since 2021 over alleged failures involving anti-money laundering and counter-terrorism financing requirements. Australia’s financial intelligence agency, AUSTRAC, launched civil proceedings against Star entities in 2022.
The eventual financial impact of that process continues to hang over a company already attempting to repair its balance sheet.
That leaves the Sydney operation particularly important. A meaningful recovery in table gaming there would provide evidence that the business itself is beginning to stabilise rather than simply surviving through financing arrangements and cost reductions.
July Revenue Offers an Early Bright Spot
There is at least an early sign of improvement.
Combined revenue from The Star Sydney and The Star Gold Coast increased 6% year-on-year in July. Management has treated that increase as evidence that customer activity is improving and that the two properties have moved back into revenue growth.
One month, though, does not resolve the broader problem.
Market analyst Tim Waterer of KCM Trade assessed Star’s recovery as dependent on several things happening together: stronger gaming revenue, particularly from Sydney table games, continued discipline over costs and visible progress in resolving the regulatory problems surrounding the company.
Outside Financing Buys Star More Time
Star has already had to turn to outside capital to strengthen its finances.
In May, after a prolonged period of financial pressure, the group refinanced its debt through a US$390 million secured term loan provided by U.S. private credit investment manager WhiteHawk. The transaction increased available liquidity by A$130 million.
That financing followed another major intervention in 2025, when U.S. casino operator Bally’s and the Mathieson family led an A$300 million investment in Star. The Mathiesons were already the company’s largest existing shareholder.
Taken together, those transactions have bought Star financial breathing room. They have not removed the underlying challenge.
A Turnaround Still Has to Be Proved
The company now has to demonstrate that its casinos can generate sustainable earnings while carrying the obligations created by its refinancing and navigating a regulatory process whose final cost has yet to be settled.
July’s revenue improvement offers a useful data point. The annual accounts tell the harder story: despite cutting its loss by more than A$120 million from the previous year, Star remains deeply in the red, and management is preparing investors for difficult trading conditions to continue.
Source: reuters.com
