The Star Entertainment Group has released its financial results for the half-year ended 31 December 2024, which show the embattled group saw a statutory net loss of $302 million after significant items of $166 million and normalised
losses after tax of $136 million before significant items.

The Group said trading performance further deteriorated over H1 FY25, in particular from the introduction of mandatory carded play and cash limits at The Star Sydney and challenging trading conditions caused by casino operating reforms and market share loss at The Star Gold Coast.

The H1 FY25 result reflects a partial contribution from Treasury Brisbane, which closed on 25 August 2024, and partial contribution from The Star Brisbane, which commenced its phased opening from 29 August 2024.

As previously announced to the ASX on 8 April 2025, The Star has completed the sale of The Star Sydney Event Centre and associated spaces for $60 million following receipt of all required consents. As part of the NICC’s consent, sale proceeds of approximately $58 million are now being held in escrow and will be released after shareholder approval is obtained for the strategic investment into The Star by Bally’s Corporation. Otherwise, these funds can be accessed subject to agreement with the NICC

In a trading update, Star said for FY25YTD, monthly trading in Q2 had stabilised compared to Q1, however there had been
a softening in trading during Q3, with revenue declining by 9% across the Group compared to Q2.

“The Star continues to be impacted by an uneven competitive environment with pubs and clubs, which continues to negatively impact on operating performance,” the Group said.

The decline was more pronounced at The Star Gold Coast, which declined 13% in Q3 compared to Q2, partially due to generally softer trading conditions but also the closure of the property for five days due to Tropical Cyclone Alfred and the gradual return to a preclosure run rate following re-opening.

The Star Sydney revenue has declined by 8% in Q3 compared to Q2, “reflecting a seasonal softening in revenue”.

View the full results here.

Controlling interest for Mathieson & Bally

Billionaire publican Bruce Mathieson made a $100 million investment in The Star Entertainment Group in early April, following Bally’s Corporation tipping in $200 million to save the casino operator. If the $300 million investment by Bally’s and Mathieson is approved by shareholders and regulators it will give them a combined 56% stake in the group and management control.

The deal values Star at around $540 million compared to the $4.5 billion Star was worth four years ago.

Despite Bally’s rescue offer, Star said in its results that “there remains material uncertainty regarding the Group’s ability to continue as a going concern”.

The Australian’s DataRoom estimates Mathieson stands to lose about $150 million if Star collapses.

US-based casino giant Bally’s Corp owns 19 casinos in the US and operations in the UK with about 17,700 poker machines, 630 table games and 3950 hotel rooms.

Bally’s said its buyout of Star Entertainment would allow the business to regain its position as “Australia’s preeminent gaming destination.”

The company “will invest in and partner” with Star as it applies its “proven track record of revitalising underperforming casino businesses”.

“Bally’s will continue to work collaboratively with regulators and stakeholders to support a successful turnaround of The Star,” the company said in a statement.

“Strategically, the transaction is intended to preserve The Star’s long-term potential, with Bally’s committed to leveraging its operational expertise to deliver a more resilient and sustainable business for all stakeholders.”

Bally’s chairman Soo Kim said Star’s casinos in Sydney, Brisbane and Gold Coast would need to be turned around but could start making money “within a reasonable amount of time”.

“The definition of insanity is doing the same thing over again and again and expecting a different result,” he said.

“We need to put different executives in there – this particular mix of executives have generated poor operating performance.”

“We are ready to go and have always been ready to go,” Bruce Mathieson jnr told the Australian Financial Review. “The hardest part has been dealing with the incumbent board and management.

“They are great, irreplaceable assets that obviously have been mismanaged. We hope to be able to bring some stability, vision and investment with a good, aligned team.”