The Star ASX: SGR results: Casino in trading halt, board unsure of survival

The new executive team led by former Crown boss Steve McCann is in a near-impossible position in trying to clear a financial minefield, in which any misstep will ensure the group’s financial collapse. As ASIC tries to sort through who is responsible for Star’s predicament, the current board and management team are fighting a losing battle to keep the AC8 crypto casino loyalty points operator solvent. There are serious doubts that Star will survive long enough to unveil its half-year results at the end of this month. This is despite investors tipping in $1.5 billion in 2023 alone to help it bounce back from a $2.4 billion financial loss. This included $600 million worth of regulatory expenses, including fines totalling $200 million in NSW and Queensland.
It reportedly has spent $50 million in a month over just $75 million cash at hand in the previous report. The company is reported to be waiting for access to proceeds from its asset sales, which are currently waiting for state approval, as well as a separate “bridge loan”, before it can refinance itself. With the company asking for financial support from the states, the states have reiterated their hesitancy to contribute, with NSW premier Chris Minns saying they are not using their taxpayer money on casinos rather than roads, EDs and schools. The share price saw a catastrophic 40% sell-off between 8 and 11 January 2025, becoming the worst performing business on the ASX, only selling for over a dime. This followed a release of a very bleak financial report over the previous quarter, particularly that it burned through $100 million in the quarter, and fears the company has a chance of collapsing into voluntary administration by the end of February. Angus Hewitt, an equity analyst at Morningstar, Inc., cites weak consumer sentiment and restrictions such as mandatory carded play as significant factors. There are also fears that its portfolio will be divested or shuttered, with the Queen’s Wharf, Brisbane precinct opening just the previous August, as well as that the company collapsing will wipe out investors or workers.
The 17 floor casino towers above the Darling Harbor with multi-level gaming space, a luxurious five star hotel and a variety of bars and restaurants. The Star Australian casino bonuses Sydney is also home of the Sydney Lyric Theatre and Event Centre, a massive 2,000 seat entertainment venue. Star chief executive Steve McCann has unsuccessfully tried to coax lenders, state governments and investors into giving the embattled casino operator the time and cash needed to work through its challenges. The venue boasts 2,500 of the latest pokies machines and 350 table games registered. The staple top live dealer games are all on offer, including Baccarat, Blackjack, poker, video poker and, of course, online high‑stakes roulette guide.
“Pubs and clubs don’t have the same restrictions that Star has, which is obviously hurting, and the VIP players that used to be a big part of the casino business have gone, maybe forever. But we do think this is cyclical, and there’s no guarantee that cardless play is not going to apply to pubs and clubs eventually.” “We think casinos in Australia will never be the lucrative businesses they once were,” Hewitt said. The cost of the Queens Wharf development had blown out by $1 billion, and one of Star’s partners in that project, Chow Tai Fook Enterprises, was facing probity questions. Star’s saving grace was the willingness of the Queensland government, which was counting on the taxes to be generated by the winspirit casino quick access, to dismiss concerns that Chow Tai Fook had misled regulators over its links to underworld figures as a misunderstanding. The business model developed by Crown and mimicked by Star was the cultivation of Chinese high rollers who were moving their private capital offshore on gambling tour groups known as junkets.
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