Concern’s are growing over the viability of the Star Entertainment Group, with the company appearing to be on the brink of collapse.
The casino operator owns and runs casinos in Sydney, on the Gold Coast and in Brisbane, with over 8000 workers nationwide left worried that their jobs are on the line.
Star warned shareholders that it’s burned through $107 million in the past three months, and at the end of 2024 it has just $79 million in the bank.
“These are dire circumstances for the Star Entertainment Group,” Investment platform Moomoo’s Chief Commercial Officer Michael McCarthy told 9News.
“They’ve ripped through cash recently. Customers are simply not turning up at the doors.
“The burn means that with only $80 million left, the end might be less than three months away for this company in its current form.”
The union hopes to find a temporary solution to keep the doors open and the thousands of workers employed.
“These members have been through a long period of uncertainty at Star,” United Workers Union Deputy Director Andrew Jones said.
“They’ve come out of COVID closures, into regulatory issues, into financial issues at the end of last year and again commencing again this year.”
Star’s stock prices have fallen from its peak of $5.81 in 2018 to 0.10c last week, which has bounced back up to 0.13c today.
The NSW government handed the casino a lifeline in 2023, but Premier Chris Minns said they wouldn’t be doing it again.
”We’re not going to step in again… we’ve made the decision in relation to that,” Minns said.
“We’re hopeful the next steps don’t result in the loss of jobs.”
Meanwhile, the Queensland government wouldn’t confirm nor deny if it would be stepping in.
“My interest is not around the corporate suits sitting around those board tables,” Queensland Premier David Crisafulli said.
“It’s around the workers sitting around the gaming table, and they will have a future, and they must.”
