Star’s optimism may be short-lived as penalty verdict looms

By the Editorial Team · Wednesday, October 28, 2026

Star Entertainment returned to profitability in the first quarter with a 2 percent revenue increase to $284 million and a positive EBITDA of $12 million, driven by strong performances across its Sydney, Gold Coast, and Brisbane resorts. However, the company faces significant uncertainty due to a pending Federal Court decision on a potential penalty of up to $400 million related to anti-money laundering breaches, which could impact its future stability.

Star Entertainment reported a return to profitability in its first quarter, driven by stronger revenue across its Sydney, Gold Coast, and Brisbane resorts, but the group faces uncertainty ahead of a Federal Court ruling on a significant penalty related to breaches of anti-money laundering laws.

In its update before the annual meeting on Tuesday, Star said group revenue for the September quarter reached $284 million, a 2 percent increase compared with the previous corresponding period. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose to $12 million, reversing a loss of $13 million from the same period last year. Corporate costs declined by 29 percent to $23 million, while operating free cash flow, excluding one-off items, turned positive for the fiscal year 2027 for the first time in over two years.

At the Star Brisbane integrated resort, EBITDA before the management fee charged to the Destination Business Consortium hit a record $37 million, nearly tripling the first quarter result from the prior year. The group’s cash and equivalents stood at $239 million as of September 30, down from $267 million at the end of June.

Despite these gains, Star acknowledged several ongoing material uncertainties that may affect its future operations and ability to continue as a going concern. Chief among these is the pending Austrac penalty, with the regulator seeking a fine of up to $400 million after finding the company responsible for facilitating money laundering at its casinos.

The Star Sydney casino licence remains suspended, with external administrator Nick Weeks’ appointment extended until the end of June 2027. Similarly, the suspension of the Star Gold Coast casino licence has been deferred, and Mr. Weeks’ term there continues until the end of March 2027. The advisory role at Star Brisbane also extends to the end of March.

CEO Bruce Mathieson Jr reported that more than 85 percent of the remediation plan’s milestones have been completed. Following the earnings update, Star shares gained 1.5 cents, closing at 13 cents.

While the improved financial performance indicates operational progress, the forthcoming Federal Court decision on the penalty amount poses significant financial and regulatory challenges for Star Entertainment’s ongoing business stability.

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