Home Australia’s Star Casino facing mounting financial crisis

Australia’s Star Casino facing mounting financial crisis

Star Casino, one of the biggest gambling brands in Australia, is in a dire financial situation with mounting reports that the company could be heading for administration. 

Operated by Star Entertainment Group, with venues in Sydney, Brisbane, and the Gold Coast, the casino has been blighted by increasing pressures, with not enough gamblers staking funds leading to a mammoth cash burn of $66 million (AUD 107m) in just three months.

In addition to this, Star has been the subject of ongoing investigations in four different states, in relation to money laundering concerns. 

The Crown and SkyCity casino companies have also been implicated in these probes. 

After decades of business, it appears few will be betting on Star navigating the troubled waters that surround the company at present. 

ABC reports it allowed organized crime groups, including triad gangs from Macau, to gain a foothold within its premises, operating gambling activities from its venues. 

This has contributed to legal proceedings, with the regulator ASIC alleging Star’s leadership board had “failed to give sufficient focus to the risk of money laundering and criminal associations”.

The shadow of ASIC has forced Star to allocate $92.6m (AUD 150m) to a potential, additional financial penalty from the federal AML watchdog, AUSTRAC. 

Amid this storm of strife, Star has incredibly been heavily involved in expansion plans, sending the company to the abyss. It has acted as a major supporter of the recently opened Queen’s Wharf entertainment complex in Brisbane, where mounting costs have added to the extent of the financial black hole.

Not concerned about the corporate suits, says Queensland Premier

“We think it is pretty unlikely Star is going to be able to trade itself out of this predicament,” stated Morningstar analyst Angus Hewitt.

The financial services firm representative added that “Operationally, conditions are really challenged,” as “the consumer is weak with cost of living pressures, and mandatory carded play is really weighing on revenue at Star. 

On that last point, the casino is contesting fresh regulations that limit the amounts gamblers can stake, in certain markets.

Hewitt further asserted that the business will be fortunate to continue trading through to the end of February with investors facing the prospect of a total wipeout, given the various financial storms coming its way.

In Queensland, where Star has a presence in Brisbane and on the Gold Coast, its new premier David Crisafulli said the government will aid workers, with a lesser concern for stakeholders.

“Our focus is on the people who work there, not on the company,” he said, with thousands of jobs on the line.

“We’re not in the business of being concerned about the corporate suits who sit around a company,” added Crisafulli.

Image credit: Via Midjourney

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The ReadWrite Editorial policy involves closely monitoring the tech, gambling and blockchain industries for major developments, new product and brand launches, AI breakthroughs, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

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