Star Entertainment Group has told lenders it only has roughly one week left of funds remaining as it faces a financial crisis that may prove difficult to solve.
With both online and brick-and-mortar casinos around Australia, Star Entertainment shocked the entertainment sector when it failed to deliver its half-year financial statement when the Australian Securities Exchange opened this morning. This resulted in a trading halt, with ASX temporarily pausing the trading of Star’s shares as it awaited a statement from Star Entertainment. And the update was not looking good for the gaming company.
Star Entertainment Group is in deep trouble and facing potential bankruptcy after a temporary trading halt, with its shares rapidly falling 15% as it seeks rescue. This didn’t help the casino company’s financial challenges, with Star Entertainment already announcing that it was struggling to prove it was still viable earlier in the week.
Over the past few years, Star Entertainment has spent millions towards compliance upgrades and new technologies to fight money laundering concerns from the domestic government in Australia. All of the spending to secure its casino licenses has left Star Entertainment with great financial woes. In 2024, Sydney decided not to revoke Star’s license to operate, allowing them run with a $15 million penalty, another blow even as it received a reprieve. In January 2025, Star attempted to buy time by selling the Sydney Event Center and other assets in The Star Sydney complex. Altogether, Star Entertainment still faces an expected $79.5 million loss in the second half of 2024.
Star Entertainment is now seeking solutions, including a $650 million refinancing proposal from Oaktree Capital Management. This would hopefully stabilize Star Entertainment’s finances and save it from bankruptcy. If this doesn’t go through, experts believe that the company will have to start a voluntary administration process, meaning a divestiture of assets that offers a fresh start to potential buyers.
Meanwhile, there are around 9,000 workers across Star Entertainment Group’s operations that are currently left in limbo. The administration process would likely mean a big cut in operations and thus mass layoffs. Queensland Premier David Crisafulli stated earlier today that he was committed to protecting the company’s employees, saying that the terms of operation under new management would be non-negotiable.
As of this writing, Star Entertainment Group’s shares are at just 11 cents as the company’s future hangs in the balance. It doesn’t seem as though investors believe that Star has what it takes to come out of this severe financial struggle. Still, Star is hoping to restore its stability. It needs to submit its earnings report by the end of the day or its shares will be suspended from Monday on.
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