The Star haemorrhages $307 million as another fine hangs over casino operator
Beleaguered casino operator Star Entertainment is facing fresh questions about its viability after posting a $307 million loss for the year at the same time a potentially even larger fine is hanging over the business.
The 2026 annual result was impacted by more than $80 million in fines and settlements relating to the company’s slew of recent legal troubles, and $35 million in restructuring costs.
The Star has posted a $307 million loss, but is facing a massive fine in the coming months. Sam Mooy
It is actually an improvement on 2025, when the company bled nearly $428 million.
Chairman Soo Kim, who was appointed to lead the board in December after US casino giant Bally’s – which he also chairs – injected hundreds of millions into the Star to keep it afloat, said the results were promising.
“While we are no strangers to casino turnarounds, The Star is one of the most complex challenges we have encountered,” he said.
“While far from complete, we are witnessing the first green shoots.”
Among those shoots highlighted by the company is $367 million in cash and other assets in the bank – a far cry from early 2025 when it was in danger of running out of cash.
That was achieved on the back of The Star selling its stake in the Queen’s Wharf development in Queensland and slashing operating costs by almost 8 per cent to $860 million.
“Critically, monthly revenues are no longer declining year-on-year and the business is cash flow positive for the first time in years,” Kim said.
“The group has successfully refinanced its corporate debt and continued the work of strengthening its balance sheet with a strong liquidity position,” chief executive and managing director Bruce Mathieson Jr, whose family’s funding also helped keep the Star stay in business, said.
Bally’s and Star chairman Soo Kim said green shoots were starting to grow for the Australian casino operator. Getty
“These achievements have provided greater stability and a stronger foundation for the future.”
However, The Star’s position could be tested as soon as next month.
The company is awaiting a Federal Court decision over a money-laundering case bought by the financial crimes watchdog, AUSTRAC, alleging the casino operator did not conduct due diligence on high-risk customers.
AUSTRAC is pushing for a $400 million fine.
However, in Monday’s annual report, The Star said any penalty greater than $100 million would be “challenging based on available liquidity options”.
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