Should you snap up shares in this volatile ASX player?

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. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. The Motley Fool launched its Australian casino jackpot slots presence in 2011, and since then has grown to reach over 1 million Australians. The Star Entertainment Group Limited is an Australia-based company that provides gaming, entertainment and hospitality services. The Company operates The Star Sydney (Sydney) and The Star Gold Coast (Gold Coast). The Company’s segments include Sydney, Gold Coast, and The Star Brisbane.
Revenue slumped 19 per cent over the last 12 months, with Star Sydney the company’s worst-performing asset. The largest shareholder of the pubs and bottle shop giant said it wants more say in the company’s strategy ahead of new CEO Jayne Hrdlicka’s arrival. The casino giant has received the last tranche of a $300 million investment from American best bitcoin casino mobile games giant Bally’s Corporation and the billionaire Mathieson family. With prevailing balance sheet concerns and liquidity risk, we assign Star a Poor Capital Allocation Rating. We respectfully acknowledge the Traditional Custodians of the land where we MGM Grand live roulette and work and pay our respects to all Elders, past and present, of all Aboriginal and Torres Strait Islander nations. By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted top customer service reviews. Don’t worry, though – you’re not locked in, and can cancel your auto-renewal at any time before each ‘anniversary’ date without question or penalty.
Star Entertainment returned to its customary position in the loser’s column after warning shareholders about the “material uncertainty” of their investment, something they should be all too aware about already. Star Entertainment crashed 18 per cent as the casino operator continued to seek a financial lifeline. The inquiry will determine whether Star is fit to hold a casino license. Importantly, it could be a case of ‘two strikes and you’re out’ this time. If the company is deemed unsuitable, goat spins deposit limits it runs the risk of permanently losing the ability to operate, resulting in its Sydney rocketplay online casino bonus terms 2026 being shut down.
However, Star and its JV partners were “unable to reach agreement on a number of outstanding commercial issues” relating to the deal. Revenues are down, with Star Entertainment reporting an unaudited $270 million in revenue for 4Q FY25, down 31% on 4Q FY24. The gambling company confirmed that JP Morgan increased its voting power in the group by 6.34% to 7.41%, taking its shareholding from around 182 million to nearly 213 million. We acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians and Traditional Custodians of the lands where we live, learn, and work.
Dr Higgins then told the court Star had commissioned a report by a security firm about the risk junket operators posed to Star and alleges the board should have been given the report. Looking ahead, Wall Street looks like dusting itself off after Friday’s sell off with futures markets pointing to a 0.3% rise on the S&P 500 tonight. Slightly off Broadway, a number of companies got in on the act to mixed reviews from investors.
While former management has been blamed heavily, the company still has a lot of work to do to fix the business. However, the Bell Report underscores the NICC’s concerns that it was not receiving all of the facts from The Star at a time when we needed certainty the company could fund and prioritise an urgent business turnaround. While most of the above listed companies have been fined by regulators, the consequences for individual directors have been limited or non-existent. And herein lies the problem – lack of accountability breeds inattention, indolence and recklessness.