The longer-term investment case is clouded by the threat of Crown Sydney, liquidity risk and tightening regulatory measures. This article explores the once monopolistic establishment and why we believe its trading over 50% below its fair value. Star Entertainment’s shares will remain suspended for at least another week as the Pullman Reef casino virtual sports operator’s chief executive, Steve McCann, tries to secure the last of a series of deals critical for the company to stay solvent.
An American online casino customer support operator controlled by a New York hedge fund has joined the opportunists sniffing around embattled Star Entertainment Group, which is on its last legs and desperately seeking a capital injection to avoid administration. The casino operator warned that additional equity may be required as part of the refinancing of the DBC debt facility. Star first entered the deal with its the Hong Kong investors in early March, after months of warnings about its financial future — and prior to the bigger deal struck with Bally's and the Mathiesons. The Australian Financial Review reported that the company had failed to raise the funding required to meet near-term payments, including for payroll, which puts the company at serious risk of running out of cash. After a brief trading halt on Friday morning, Star shares plunged 15.4 per cent to 11¢, valuing the company once worth $5 billion at about $315 million. Star did not name the parties that are expected to provide an offer of financing, but it has confirmed previously that US finance giant Oaktree has tried to buy out Star’s debt from its lenders.
The embattled casino operator has signed a $300 million rescue package with Bally’s Corporation to save the business from administration. The company’s largest shareholder has thrown his support behind the American best casino RTP 2026 giant’s rescue bid despite Star’s lengthy discussions with another party. Last week, Star shareholders separately approved a $300 million rescue deal backed by US casino market segmentation giant Bally's and existing investor Bruce Mathieson. The Star Entertainment Group Limited is an Australia-based company that provides gaming, entertainment and hospitality services.
The European Central Bank has cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the US and plans to boost military spending drive Europe's biggest economic policy upheaval in decades. Tony Sycamore from IG has circulated a note that highlights how dire the price action has been on the stock market in recent weeks. ABS head of business statistics Robert Ewing said that while spending on goods pushed up overall spending in late 2024, a 1.5 per cent rise for services drove the January growth. The executive order creates a US digital asset stockpile but the US will not sell any Bitcoin deposited into the reserve.
Australian shares fell to its lowest close in more than six months, wiping off about $50 billion in market value. Star Entertainment will receive a $53 million lifeline, with its Hong Kong joint venture partners confirming they will buy its stake in the Brisbane Queen's Wharf development, pulling it back from the brink of collapse. As well as negotiating with lenders, Star has pleaded for help from state governments, and on Friday, Star chief executive Steve McCann called for its various stakeholders to come together. As it fights for survival, Star said it was continuing discussions to attempt to deal with the crunch on its finances, but there was best free slot games no credit card guarantee it would be able to reach a deal to resolve its situation. It acknowledged the uncertainty over its ability to continue operating if the negotiations were unsuccessful.
The report concedes that some improvements have been made since 2022, including a greater level of transparency and cooperation. However, the NICC said the report underscores concerns that it was not receiving all the facts from The Star at a time when it needed certainty the company could fund and prioritise an urgent business turnaround. The casino group had already requested a trading halt on Friday after Adam Bell SC’s latest damning report covering its operations was published on the same day by the NSW Independent online casino debit card Australia Commission (NICC). The Sydney-based exchange issued the announcement on Monday morning after Star failed to publish its annual financial report by last Friday’s (31 August) due date.
Our Star Entertainment analyst Angus Hewitt recently sat down with me to discuss the Star's financial position, regulatory concerns, what markets want to see from the company, and whether the shares offer a big enough margin of safety. "There remains material uncertainty as to the Group's ability to continue as a going concern," Monday's statement reiterated. The casino operator, which was due to deliver its latest accounts on Friday, is facing voluntary administration.
