Star Entertainment faces liquidity crunch due to increased cost and regulatory fines

Australian casino group Star Entertainment Group has warned that its amount of available cash has dropped by almost 50 per cent to AU$79m due to spiraling costs, including regulatory fines, as well as challenging trading conditions.

Available cash had dropped at the end of December 2024 by $70m from the previously reported balance of $149m in September. This was due to the drawdown of Tranche 1 of the group’s new debt facility (New Facility) which occurred on 3 December 2024. The full $100m of Tranche 1 under the New Facility was drawn at the time, resulting in a net increase in Available Cash to the Group of $37.1m.

Star stated: “Adjusting for the impact of the drawdown, there has been a reduction in Available Cash over the three month period ended 31 December 2024 of approximately $107m. The reduction in Available Cash reflects the continued difficult trading conditions highlighted at the Group’s Annual General Meeting on 28 November 2024, essential capital expenditure, significant items including upfront fees relating to the establishment of the New Facility, the first $5m instalment of the $15m fine imposed by the NSW Independent Casino Commission on 17 October 2024 following its consideration of the Bell Two Report, significant legal and consulting fees, ongoing transformation and remediation activities, and joint venture contributions.

“The Group continues to work towards the fulfillment of conditions precedent that must be met in order to draw down the additional $100m under Tranche 2 of the New Facility. A number of these conditions remain challenging to meet given the Group’s current circumstances. In addition to seeking to fulfill the conditions precedent for Tranche 2 of the New Facility, the Group continues to explore other liquidity solutions.”

​Australian casino group Star Entertainment Group has warned that its amount of available cash has dropped by almost 50 per cent to AU$79m due to spiraling costs, including regulatory fines, as well as challenging trading conditions. Available cash had dropped at the end of December 2024 by $70m from the previously reported balance of $149m…