Star Entertainment Secures $285M Debt Waiver Amid Financial Troubles

Australia’s Star Entertainment Group has obtained a vital debt waiver of AUD 430 million (around $285 million), providing the struggling casino operator with the opportunity to raise additional funds as it grapples with a series of financial challenges.

Star Entertainment Obtains Massive Debt Waiver

On Tuesday, the company confirmed to investors that it had secured an additional debt waiver, following a report in The Australian Financial Review indicating that it was in talks with its lenders regarding urgent loan matters. In a statement, the company confirmed that the discussions have been finalized, securing a covenant waiver until September 30, 2025, subject to the exchange of signed documentation. These matters will be reviewed by the directors as part of the process to finalize the company’s audited financial report for the year ending June 30, 2025, which is expected to be lodged by the end of the day.

It is no secret that one of Australia’s largest casino operators has been facing significant financial difficulties recently. Star’s FY25 report revealed a 29.2% year-on-year decline in revenue, further exacerbating an already concerning net debt situation. However, with a cash infusion of AUD 300 million (approximately $190 million) from Bally’s Corporation, Star Entertainment was able to reduce its net loss for FY25 by over AUD 1.2 billion (around $760 million) compared to the previous year.

This latest move could also potentially lead the Mathieson family, who previously supported the Bally’s deal, to invest further in Star’s debt repayment efforts.

Star Entertainment Has Had Financial Troubles

Star has repeatedly breached the terms of its loan agreements and has depended on its creditors to grant extensions on repayments. Despite receiving multiple cash injections throughout the 2025 financial year, such as the one from Bally’s, and implementing cost-cutting measures that saved AUD 100 million ($66 million), the company reported a cash balance of approximately AUD 189 million ($125 million) as of August 25. This means it would be unable to meet its debt obligations without the granted waivers.

Things became even more difficult for Start Entertainment earlier this month when it was announced that American multinational finance corporation JPMorgan Chase & Co. and its affiliates had ceased to be substantial shareholders of the company.

Star Entertainment further stated that the introduction of mandatory carded play and cash limits at its Sydney venue had negatively impacted revenue. It also acknowledged that its remediation program, along with a decline in market share, has further contributed to its financial challenges. 

The company stated that it continues to face “uncertainty” about its future, as it braces for a substantial fine from the financial crimes agency AUSTRAC, which is expected to exceed AUD 400 million (approximately $255 million).