Star Entertainment (ASX: SGR) is likely to head into voluntary administration by the end of the week without an urgently needed lifeline, according to experts.
Star Entertainment runs casinos across Sydney, Brisbane and the Gold Coast and was given an expected three more months of operation at the end of 2024, after dropping $108 million in the three months to 31 December just to keep its doors open.
Shares in Star were automatically suspended by the ASX on Monday after the casino operator missed the 28 February deadline for reporting its latest earnings update, confirming on Monday that it would not be able to lodge until it secured a sorely needed funding package.
Chief Executive Steve McCann renewed calls for help to bail out his company as recently as the end of January, but in response New South Wales Premier Chris Minns seemed to rule out any further support from his government.
“We did sit down with Star over a year ago and work out a rescue package. As I said, we’ve got funding requests right across NSW… I don’t have money for casinos.”
Queensland Premier David Crisafulli said he would consider any requests from Star, but has remained firm that any support from his government would be solely focused on preserving jobs at Star’s Brisbane and Gold Coast locations, not tax relief.
