On April 15th, Australian casino operator Star Entertainment finally published its financial report for the first half of the financial year for 2025. The report, which was delayed due to the company’s financial situation, showed that the company witnessed a net financial loss of AU$302 million for the period that ended on December 31. The report, which was published at the ASX, showed that the casino operator’s trading performance for the first half of FY25 (July to December 2024) had worsened.
Star Entertainment stated that one of the reasons for this loss was due to changes in casino operating reforms, like the introduction of compulsory carded play and cash limits, which affected the Star Sydney. Losses in its market share have also contributed to the loss. But the largest loss came from AU$166.2 million in significant items such as fines and debt costs.
Such losses are usual for online casinos since their operations aren’t usually so large as Star’s. If anything, they are mostly profitable because gamblers flock to them for two reasons: convenience and the chance to win real money from wherever.
Many traditional casinos around the world now have online options as well, as they are easier to maintain and are a good source of revenue. These sites offer great sign-up bonuses, very wide game selection, fast and secure ways to deposit money and receive winnings, and generous loyalty bonuses. Australians can access these offshore online casinos from any corner of the country. (Source: https://www.cardplayer.com/au/online-casinos).
While the desperate financial situation of Star is a big blow to the gambling market, it doesn’t come as a shock. The recent figures from the company only confirmed what many have suspected, as the company has been going through turbulent times.
Although the company is at a loss currently, it has been handed a lifeline. Star’s own report warned of “material uncertainty” about its ability to stay afloat, which implies the potential need for more capital injections.
Bally’s Deal With Star Entertainment
On the 7th of April 2025, Star Entertainment announced that it had reached an agreement with US Bally’s Corporation and Investment Holdings.
Bally’s has offered to give the Australian casino operator the sum of AU$300 million (USD 187 million) in a bid to rescue the company.
In a statement, the US corporation said that it will release the money in tranches, with Star receiving the first tranche of AU$100 million. The initial funds were paid to help keep the company temporarily afloat while they work towards gaining regulatory approval to carry out the full investment.
For Star, this deal comes at a critical time. With the payment of the first tranche, Star's cash balance has risen to AU$98 million, a figure that is of importance to the gaming and investment communities. This balance also shows that all cash reserves had been depleted before the deal was agreed upon.
Before agreeing to the deal, Bally’s had considered the option of waiting for Star to enter voluntary administration. However, the firm had to broker the deal for fear that Star would be hard to rescue if they waited any longer.
Bally’s has a track record of rejuvenating underperforming casino businesses. Soo Kim, the company’s gaming chairman, recently travelled to Australia to finalise the deal with Star, indicating his hands-on approach to the investment.
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