Embattled Australian casino operator The Star has acknowledged that ‘there remains material uncertainty as to the Group’s ability to continue as a going concern’.
In financial results released on Monday, the group confirmed that it had available cash amounting to AU$78 million ($48.5 million) as of December 31st but outlined concerns it would be unable to meet conditions to raise more funding.
In order to draw down another AU$100 million ($62.2 million) from a previously negotiated loan facility, the group needs to raise AU$150 million ($93.25 million) in subordinated debt. However the group notes its capacity to do so ‘is limited in the short term in the absence of additional liquidity solutions’.
The filing states that ‘the Group continues to also explore other possible liquidity solutions’.
It was reported earlier that the company was running through about AU$35 million ($21.76 million) of its cash per month, causing doubts among investors that the company would survive February.
This uncertainty has caused the company’s directors to seek advice on applying safe harbor provisions – to protect directors from debt liabilities in case the company becomes insolvent.
‘While discussions continue with respect to a range of different solutions, there is no certainty that any of these negotiations will result in one or more definitive arrangements that might materially increase the Group’s liquidity position’.
Even the recent appearance of Macau-based petrochem mogul Xinchun Wang as the second-largest investor in the group – holding 6.52 percent of voting power and attempts to negotiate with state governments on reducing the tax burden have failed to alleviate concerns that The Star might not pull through.
Results
The group reported a 15 percent quarterly drop in its fiscal second quarter revenue, ending December 31st – reaching AU$299 million ($185.9 million), however the group was able to diminish its EBITDA loss from AU$18 million ($11.2 million) in fiscal 1Q25 to AU$8 million ($4.97 million) in the fiscal second quarter.
The group indicates that the results ‘reflect continued weakness in the operating performance of the Group due to the ongoing challenging consumer environment, the impact of mandatory carded play and cash limits in NSW, and costs associated with ongoing remediation activities’.
The group also attributed the 15 percent drop in revenue quarterly to the closure of Treasury Brisbane casino and ‘continued softness at The Star Sydney’- due to the mandatory carded play and cash limits. This was slightly offset by revenue growth at The Star Gold Coast.
The Star Sydney brought in AU$176 million ($109.4 million) in revenue, down by 6 percent quarterly and 23 percent yearly, while EBITDA fell to negative AU$4 million ($2.5 million), a heady reduction from the AU$21 million ($13.06 million) loss in the first quarter, but a reversal of AU$15 million ($9.33 million) in profit in the same period of last year.

The Star Gold Coast revenue increased by 3 percent quarterly but fell by 7 percent yearly, to AU$111 million ($69 million), while EBITDA rose quarterly to AU$11 million ($6.84 million), down 48 percent from a year prior.
The Star Brisbane had its first full quarter of operations, bringing in AU$10 million ($6.22 million) in operator fee revenue, however EBITDA was negative, at AU$13 million ($8.08 million). The Star holds a 50 percent stake in the joint venture controlling The Star Brisbane – with 25 percent each held by Chow Tai Fook and Far East Consortium.
Casino license updates
The Star Sydney’s casino license remains suspended and is held by a Manager appointed by the authorities. This situation is set to last at least until March 31st of this year, after which the New South Wales Independent Casino Commission (NICC) ‘will reassess the Star Sydney’s suitability to regain its casino license’.
The suspension of the casino license for The Star Gold Coast has been deferred until March 31st, while regulators will examine the group’s remediation activities in February – aiming to produce a decision by end-March.