The Australian casino operator Star Entertainment has reported a large loss in its financial report for the first half of FY 2025.
There has been a net loss of AU$302 million (around $191 million) for the six months ended December 31. Within the report to ASX, The Star Entertainment Group highlighted that trading performance has further deteriorated over H1 FY25.
It states this is due in particular to the introduction of mandatory carded play and cash limits at The Star Sydney and ‘challenging trading conditions caused by casino operating reforms and market share loss at The Star Gold Coast.’
The company has been through a turbulent time as of late so the figures are unsurprising to many. The uncertainty could be coming to a slight end though, as an agreement with the US Bally’s Corporation was announced on April 7.
Australian casino operator Star strikes deal with US Bally’s Corp
The agreement is a lifeline deal, with the US corporation committing to a rescue package of AU$300 million (US $187 million) to help the company.
It’s said the initial funds will help keep Star afloat for 15 months while seeking regulatory approval for the full investment.
The deal has come at a critical time for one of Australia’s largest entertainment and gaming companies that operates casino and resort properties in Sydney, Brisbane and the Gold Coast.
Originally, however, Bally’s Corporation considered waiting for Star Entertainment to enter voluntary administration before investing but feared the casino group would be too hard to rescue. The gaming firm’s chairman, Soo Kim, spoke with Reuters to provide the insights into the deal.
During the actual announcement, Bally’s stated it would “bring a proven track record of revitalising underperforming casino businesses.”
On discussing how it would work, the corporation said it would “continue to work collaboratively with regulators and stakeholders to support a successful turnaround of The Star.”
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