Should you snap up shares in this volatile ASX player?

Star chief executive Steve McCann has unsuccessfully tried to coax lenders, state governments and investors into giving the embattled casino operator the time and cash needed to work through its challenges. Embattled casino operator minimum deposit online roulette Star Entertainment has warned that it faces “material uncertainty” over its ability to stay afloat unless it finds a solution to its worsening financial woes, sparking a further drop in the company’s share price. Shares in The Star Entertainment Group Limited (“Star”) tanked last week after their first day back on the ASX in almost a month. This ended a prolonged trading halt further aggravated by a slap-on-the-wrist ASX suspension for failure to provide timely financial accounts.
She said if this eventuated the administrator would try to find a way to sell the company, or parts it that are unprofitable, and then see if it could continue in a smaller way to be successful. Mr Hughes said Star would likely look to shore up some of its stronger assets, including the Brisbane casino, ahead of the 2032 Olympics. Ensuring Brisbane’s casino doesn’t become an “eyesore without tenancies” should be a priority as further doubt is cast over the future of Star Entertainment, a business expert says. In the job just eight weeks, insiders say he was stunned at the state of the company’s finances and the contracts that had been negotiated over the Brisbane development by the previous board and management. Since their introduction in Sydney in September last month, with $5,000 limits in some areas, average daily revenue has dropped more than 10 per cent when compared to the previous four weeks. One of the key challenges highlighted in Star’s belated set of accounts is the introduction of cashless gaming cards.
US casino safety Brisbane operator Bally’s has reportedly shown interest, as has billionaire Clive Palmer. With the company’s future under a cloud, baccarat online strategy guide its board is holding out hope of a last-minute rescue, saying on Friday that it expected to receive “possible liquidity solutions” during the day, Wharf FX game fairness which would be carefully assessed. Star Entertainment has given its suitor Salter Brothers until the beginning of April to complete due diligence and deliver a $750 million rescue package, as the casino group teeters on the brink of collapse for the second time in a month. The ASX-listed company was hit with a 41 per cent protest vote against its remuneration report as it revealed an unaudited earnings before interest and tax loss of $27 million for the first four months of trading in the new financial year. The casino operator burnt through $107 million of its available cash in the December quarter, which should be its busiest trading period of the year. Meanwhile, Star’s largest shareholder and legendary hotelier Bruce Mathieson had also previously pitched two offers for the company’s Gold Coast instant play casino best odds.
Membership fees for the quarter hit $US1.19 billion, up from $US1.11 billion in the second quarter of 2024, with the company reporting 78.4 million paid memberships and 140.6 million total cardholders. The retail giant’s second-quarter revenue increased to $US63.72 billion, from $US58.44 billion during the same quarter in fiscal 2024. “The tariffs are very fluid right now. So it’s hard to really give any predictions on what we can do, but we are prepared, our people are very well equipped to lower prices and defer any cost increase that come our way.” “Sometimes the margins are much tighter in those categories, but they [buyers] are prepared to work closely with the suppliers and see how efficient we can bring goods to market – is there anything we can mitigate in those categories. The Insurance Council also often puts out detailed reports on the economic impacts of natural disasters.
Any closure would also severely affect neighbouring businesses, including cafes and hairdressers that rely heavily on those drawn to, and staying at, the gaming precinct. Its shares plummeted by more than 15 per cent after the trading halt was lifted on Friday morning. Only a white knight can save the casino operator from becoming Australia’s biggest corporate collapse since Virgin Australia in 2020. Star’s recent financial results were delayed by liquidity concerns and the company’s shares were suspended from the ASX. The company subsequently secured fresh funding, published its numbers and returned to trading in volatile style.
Exchange operator ASX automatically suspended shares in Star on Monday morning after the casino operator missed Friday’s deadline for issuing its earnings update for the first half of the financial year. There remains a large amount of uncertainty surrounding the future of Star’s earnings recovery. The pending AUSTRAC fine, eventual outcome of its casino license and a probable capital raise in the coming months all weigh heavy on its future performance. The collapse in earnings since fiscal 2024 has indicated Star might not have sufficient liquidity to stay afloat amidst near-term earnings headwinds, the AUSTRAC fine and equity contributions to redevelopment. With a $200 million emergency debt facility at a rate of 13.5%, it appears Star may be buying time ahead of a potentially value-dilutive equity raise in fiscal 2025. Queensland is currently the only state where Star holds an exclusive position and consequently the company is throwing substantial amounts of capital (~$3 billion) in ensuring it stays that way.
Xingchun Wang has spent more than $38 million buying shares in Star, which last week warned it was running out of money and could be weeks away from collapse if it did not secure additional financing. The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Now the chances of losing it all have been turned back onto one of Australia’s biggest casino operators. “Traditionally, probity checks have taken many months for new operators in casinos across the different state jurisdictions,” Mr Jones said. Swinburne University law and corporate governance specialist Helen Bird told ABC’s News Channel it seemed “more than likely” the company would tip into voluntary administration.
Star Entertainment was suspended from trading by the ASX on Monday over its failure to lodge financial statements for the December half-year. Star Entertainment Group was delisted from the Australian Securities Exchange on Monday as the group faces scrutiny over a series of scandals related to criminal activity and unethical conduct at its casinos. “Any deal that promises to keep venues in Brisbane, the Gold Coast and Sydney operating as a going concern is a good result for the Star workers, their families and the communities they live dealer casinos US in,” the union’s casino director Andrew Jones said. “We’re always looking at everything within the best interest of the staff certainly our shareholders,” Daniel Finch, CEO The Star Brisbane, said 7NEWS on Monday.
The European Central Bank has cut interest rates as expected on Thursday and kept the door ajar to more, even as a looming trade war with the US and plans to boost military spending drive Europe’s biggest economic policy upheaval in decades. Tony Sycamore from IG has circulated a note that highlights how dire the price action has been on the stock market in recent weeks. ABS head of business statistics Robert Ewing said that while spending on goods pushed up overall spending in late 2024, a 1.5 per cent rise for services drove the January growth. The executive order creates a US digital asset stockpile but the US will not sell any Bitcoin deposited into the reserve.