The Star Entertainment Group has stabilised its trading at The Star Sydney in its latest financial period, but trading levels at the Australian land-based casino ‘remain at historical lows’.
The group also said in its report for the fourth quarter, the three-month period ending 30 June, that The Star Gold Coast had ‘stronger volumes’, while The Star Brisbane had a ‘lower operator fee’, pending regulatory approval of the Destination Brisbane Consortium (DBC) and its amended casino management agreement (CMA).
Publishing its Q4 FY26 quarterly activities report, The Star declared revenues of AUS$265m (approximately €162.8m), which were in line with the previous quarter, but down by 2% year-on-year (YoY).
Before significant items, the group’s EBITDA for the period was an $8m loss, a 70% improvement on the $27m loss reported in the previous year during the same period, but a decline on the $1m loss reported in Q3 FY26. The Star noted that the YoY improvement reflected the cost savings impact.
The Star Sydney
- Revenue: $150m (Q3: $147m, Q4 FY25: $162m).
- EBITDA: $10m loss (Q3: $4m loss, Q4 FY25: $14m loss).
- Gaming revenue: 4% YoY drop. Table games and non-gaming revenue softness was offset by electronic gaming machine revenue growth.
The Star Gold Coast
- Revenue: $107m (Q3: $101m, Q4 FY25: $96m).
- EBITDA: $13m (Q3: $8m, Q4 FY25: $2m).
- Gaming revenue: up 21% YoY. Growth in table games and electronic gaming machines.
- Non-gaming revenue: in line YoY.
The Star Brisbane
- Revenue: $5m (Q3: $15m, Q4 FY25: $8m).
- EBITDA: $12m loss (Q3: $4m loss, Q4 FY25: $15m loss).
DBC progress
At the start of April, The Star completed the first stage of its binding long-term documentation with Chow Tai Fook Enterprises Limited (CTFE) and Far East Consortium International Limited (FEC) regarding the DBC, offloading its 50% equity interest in Queen’s Wharf Brisbane.
In connection with this, the fixed monthly operator fee agreed under the DBC CMA was adjusted and finalised. The DBC casino operator fee payable to The Star is a fixed annual $18m fee payable monthly, alongside a performance-based incentive fee comprised of two components, each based on EBITDAM. The Star received a $4.5m operator fee in Q4.
The DBC also holds a performance termination right, allowing it to terminate the CMA in certain circumstances based on performance, on not less than 90 days’ written notice.
Stage two is related to the Destination Gold Coast Consortium (DGCC) and other Brisbane properties that are owned or partially owned by the operator. Conditions precedent are expected to be satisfied during the second half of 2026 and no later than 31 March 2027.
The Star now has complete ownership of The Star Gold Coast assets, while CTFE and FEC will take control of the Treasury Hotel and the Charlotte Street Car Park near Queen’s Wharf.
WhiteHawk
Completing stage one satisfied the terms of The Star’s refinancing deal with WhiteHawk Capital Partners. During the quarter, the Australian casino operator completed refinancing its debt in full, with US$390m (approximately A$540m) of funds associated with WhiteHawk.
As a result, The Star continues to take action on its remediation plan to meet the requirements of regulators, in a bid to improve its overall compliance and efficiencies. With the completion and net of the interest reserve account required to be funded under the facility, the operator increased its additional liquidity by approximately A$130m.
These funds will be used to support its ongoing operations as well as cost-out and strategic initiatives, including streamlining its corporate office, which is under new leadership following the completion of the A$300m strategic investment by Bally’s Corporation and Investment Holdings late last year.
The Star’s total cash and cash equivalents as at 30 June 2026 were $267m.
Moving towards suitability
The operator also continues to cooperate with authorities to move on from its previous regulatory and compliance issues and towards suitability.
Recently, The Star settled its tax disputes with the Australian Taxation Office regarding historic Goods and Services Tax (GST) and withholding tax treatment of payments to junket operators.
The Star Sydney was also handed fines totalling $10m from the New South Wales (NSW) Independent Casino Commission (NICC), as well as an enforceable undertaking to set a further $5m aside to bolster its financial crime risk management operations technology.
Bruce Mathieson Jnr, Group Chief Executive Officer & Managing Director at The Star, said: “We take our obligations to abide by gaming regulations seriously and appreciate that the NICC has allowed us to pay these penalties progressively up until 30 June 2027 while we continue to invest in our technology uplift. These events occurred between December 2018 and September 2025 and prior to the commencement of the current leadership.
“We will continue to engage constructively with the NICC in respect of The Star Sydney as we work through our remediation program. I am confident that we are making progress.”
