(Reuters) -Australia's Star Entertainment on Wednesday reported a deeper quarterly loss sequentially, underscoring the prolonged pressure on the casino operator from regulatory crackdowns and the
Star Entertainment Reports Increased Loss Amid Regulatory Challenges
Star Entertainment's Financial Struggles
(Reuters) -Australia's Star Entertainment on Wednesday reported a deeper quarterly loss sequentially, underscoring the prolonged pressure on the casino operator from regulatory crackdowns and the shift to mandatory carded play.
Impact of Regulatory Inquiries
The embattled gaming group posted a fourth-quarter loss before interest, taxes, depreciation, and amortization of A$27 million ($17.58 million), compared with a loss of A$24 million in the prior quarter.
Government Actions Affecting Earnings
Star has been reeling from a series of regulatory inquiries into alleged breaches of anti-money laundering and counter-terrorism laws, coupled with a broader downturn in gaming revenue.
Broader Casino Sector Challenges
A recent move by the New South Wales government to ban cash transactions in casinos — though not in pubs and clubs — has further impacted the company's earnings potential.
The broader casino sector in Australia has yet to recover from the lasting effects of COVID-era lockdowns, border closures and now rising interest costs.
Star, in particular, has endured years of instability — marked by two Bell inquiries, the departure of its CEO and chairman, and a near-collapse that required urgent capital support.
On Wednesday, the company confirmed that its Sydney casino licence remains suspended. It plans to make a formal submission to the New South Wales Independent Casino Commission on August 31 as part of efforts to regain regulatory approval.
($1 = 1.5356 Australian dollars)
(Reporting by Rishav Chatterjee and Adwitiya Srivastava in Bengaluru; Editing by Alan Barona)
