New pokies restrictions to prevent money laundering have hit the casino operator hard with punters opting for cash-friendly pubs and clubs.
New pokies restrictions to prevent money laundering have hit the casino operator hard with punters opting for cash-friendly pubs and clubs.
By Colin Kruger
April 15, 2025 — 2.26pm
The Star Entertainment Group confirmed it was almost down to its last dollar when US casino group Bally’s injected $100 million as part of a rescue deal last week.
But Star’s business remains under threat with revenue continuing to decline across all three of its properties in the March quarter as casino reforms blunted its competitiveness. This includes the uneven pokies playing field in Sydney that drove customers to pubs and clubs, which don’t have ID checks and bans on cash gambling.
Revenue declined more than $200 million for the half year to $650 million compared with the prior December half, but it was the March quarter performance that confirmed that Star was losing market share to pubs and clubs, which are not subject to the card-based, know-your-customer requirements that are being implemented across Star’s casinos.
Star said that revenue plunged 25 per cent for the December half-year “reflecting challenging trading conditions due to the implementation of casino operating reforms [including mandatory carded play and cash limits which were implemented at The Star Sydney last year] and further loss of market share”.
It said this created “an uneven competitive environment with pubs and clubs, which continues to negatively impact on operating performance”. Mandatory carded play reforms are being introduced in Queensland this year.
Star chief executive Steve McCann told investors on a conference call, after the results were released, that Star’s financial peril has also affected customer numbers.
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“Clearly our performance continues to be very challenged as we navigate to a very difficult trading environment,” McCann said.
“The ongoing impact of regulatory reforms, the impact of mandatory carded play, cash limits, time limits, and our loss of market share across the Sydney and Gold Coast properties has had a material impact on the business, and we are continuing to operate through very challenging conditions.”
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McCann said the fact that poker machine revenue continued to rise across NSW and Queensland indicated that it was Star’s market share that has “materially declined”. It showed that a level playing field could lead to Star’s performance rebounding quickly, but McCann warned it could take years for these gaming reforms to be implemented across the entire sector.
Star said revenue declines at its Sydney and Gold Coast properties also partly reflected seasonal issues – and the Gold Coast closure due to tropical Cyclone Alfred.
Star revealed this news with the late release of its December half-year accounts which had been delayed as the board had been unable to sign off on them due to concerns about the company’s survival.
Star reported a net loss of $302 million for the December half-year, including $166 million in significant items that include a writedown of the value of its Brisbane casino, which is being sold to its consortium partners.
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Star said there remained material uncertainty about the group’s ability to continue as a going concern while the details of its $300 million rescue package were being finalised with Bally’s and pubs billionaire Bruce Mathieson.
Star revealed that it had just $98 million cash available as of April 11, despite receiving a $100 million cash injection from Bally’s on the evening of April 9. It would have been out of cash if it had not received the funds.
Shares, which were suspended from trading February 28 this year at 11¢, will recommence trading on Wednesday.
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