Casino giant’s fresh financial woes

The operators of Star Casino have reportedly told the market they are reviewing their liquidity position following days of silence after being suspended from trading.

The Star Entertainment Group was delisted by the ASX on Monday after it breached reporting conditions by failing to lodge its financial accounts for the past financial year.

The gaming giant reportedly said at the time it was still assessing its financial outlook amid reports it was pleading with banks, governments and investors for money.

The Star told the ASX late on Wednesday that it had engaged “various advisers … in relation to its liquidity position in light of adverse trading and other conditions”.

It comes after the staged opening of The Star’s $3.6bn, 12ha new site at Queen’s Wharf in Brisbane’s CBD began on August 29; days later, it is already in trouble.

The crown jewel of the new precinct employs about 3000 people with 1400 new jobs. The Star is reportedly in talks with the state government for $300m in funding.

Queensland Premier Steven Miles previously said the “worst-case scenario would be that they (Star) would have to close their doors not long after opening them”.

He added the state government would do everything it could to avoid that, with discussions about tax deferrals, and labelled the site a “fantastic asset for our city”.

The Star was reportedly supposed to have lodged its financial accounts for the 12 months to June 30 last week but had failed to do so.

At the time, it said it was because it had received a copy of the second Bell inquiry into its culture and was still assessing its financial outlook.

On Monday, the Australian Securities Exchange or ASX announced it had temporarily suspended Star Entertainment Group and delisted them from the stock exchange.

The casino operator was found to be unsuitable to hold a casino licence by lawyer Adam Bell SC who was commissioned by the NSW casino regulator.

In his second report, Mr Bell determined The Star breached casino laws and found it unsuitable for a licence – the second time in two years – but did not recommend it close.

The report noted The Star had overhauled its leadership since the probe began but was nonetheless a blow to the casino chain after it was exposed for key failings in recent years.

Austrac launched civil proceedings in 2022 against The Star and The Star Entertainment Queensland over alleged serious and systemic noncompliance.

The regulator alleged The Star had not complied with Australia’s strict anti-money laundering and counter-terrorism financing laws.