Star Entertainment's Q4 Performance Remains Soft in Spite of Aid from Bally's, according to the report.
In a significant move, Bally's Corporation has committed AU$300 million (US$195 million) to The Star Entertainment Group Limited as part of a rescue deal. However, the takeover is still subject to regulatory approval by the New South Wales Independent Casino Commission (NICC), which has expressed skepticism about Bally's suitability and Star's financial and leadership stability.
Despite Bally's investment, The Star Entertainment Group's financial performance in Q4 2025 remained weak. The company reported revenue of AUD 270 million ($175 million) with an EBITDA loss of AUD 27 million ($17.5 million), slightly worse than the prior year. The Star Sydney property reported an EBITDA loss of AUD 14 million, while The Star Gold Coast had stable revenue and a small EBITDA gain. The Star Brisbane saw a narrowing EBITDA loss, and Treasury Brisbane operated near breakeven. The company held AUD 234 million in cash as of June 30, 2025.
The situation remains uncertain and challenging for both entities. The Star's financial struggles are evident in the ongoing suspensions of its Sydney and Gold Coast properties' licenses, with the terms of the special managers extended to September 30, 2025. Mandatory carded play and AUD 5,000 cash limits were implemented across The Star Sydney, with cash limits to be reduced to AUD 1,000 from August 19.
The collapse of a proposed Brisbane casino deal around early August 2025 caused Star's shares to hit new lows, raising further questions about the company's stability. Bally's shares, however, rose slightly, as investors may view Bally's as a potential beneficiary should it proceed with acquiring or managing assets amid the fallout.
The Star also provided an update on its negotiations with its joint venture partners regarding the sale of its interest in the Destination Brisbane Consortium. The deadline of the agreement was extended, and the company made a sustainability submission regarding The Star Gold Coast on July 31.
In a positive note, The Star Brisbane successfully secured a license and commenced operation on August 29, 2024. Additionally, the Sydney Event Centre and associated spaces were sold for AUD 60 million.
As the regulatory approval process continues, both Bally's and The Star Entertainment Group will be closely watched as they navigate this challenging period. The outcome of the approval could significantly impact the future of both companies.
The uncertain financial performance of The Star Entertainment Group, coupled with the ongoing suspensions of its Sydney and Gold Coast properties' licenses, has raised doubts about its stability in the finance industry and business landscape. The potential acquisition or management of assets by Bally's Corporation, should the regulatory approval be granted, could significantly influence the finance and business future of both entities.
