The company is under growing pressure to turn around its troubled business, though its future may rely increasingly on privatisation. The outgoing chair has indicated that going private is one of several options under consideration, particularly if the casinos do not recover following a difficult year marked by high debt, asset sales and ongoing regulatory challenges.
The casino group has faced significant difficulties, including investigations into governance and financial compliance issues. While it has offloaded non-core assets such as its stake in the Queen’s Wharf Brisbane development, the business remains heavily in debt and has yet to overcome key regulatory barriers. Notably, it has not fully regained its suspended casino licences, which remains crucial for stabilising operations.
Throughout 2023, Star secured agreements with two major investors - US-based Bally’s Corporation and the local Mathieson family. Bally’s is set to hold 38% of the company and the Mathiesons around 23%. Both parties will gain board representation, indicating a shift in leadership and possibly a change in strategic direction.
Despite small improvements, trading performance remains weak at major venues like Sydney, where foot traffic and revenue continue to lag. The incomplete exit from the Queen’s Wharf project also leaves the company open to financial exposure through early next year, making it difficult to present a strong balance sheet.
More broadly, if Star continues to fall short, there is a risk it could be delisted from the ASX. The board, which will soon have new leadership, appears focused on reducing costs, regaining licences and rebuilding public trust. However, a pending legal ruling could result in up to $400 million in fines from AUSTRAC, adding further uncertainty to the company’s recovery path.
