Table of Contents
The Star Entertainment Group cut its EBITDA loss to A$1m in Q3 FY26, a 96% reduction year-on-year, as cost savings and a higher operator fee from The Star Brisbane offset continued weakness in Sydney gaming revenue.
Revenue falls 12% on Sydney weakness
Revenue for the quarter ended March 31 came in at A$266m, down 12% from the same period a year earlier. The company attributed the decline to seasonal softening and reduced gaming visitation at The Star Sydney, where mandatory carded play and $5,000 daily cash limits introduced by New South Wales regulators in October 2024 continue to suppress volumes. Average daily revenue at The Star Sydney has fallen 19% since the full implementation of those measures, measured against the four-week average prior to their introduction.
The improvement in EBITDA — from a loss of A$24m in Q3 FY25 to a loss of A$1m in Q3 FY26 — reflects the impact of cost reductions and a higher operator fee from The Star Brisbane. The company described operating conditions across all three properties as “challenging,” citing mandatory carded play, the NSW cash limits, and stricter regulatory supervision.
The quarterly result follows a difficult first half. For the six months ended December 31, 2025, normalised revenue reached A$584.9m, down from A$650m in H1 FY25, with normalised EBITDA showing a loss of A$7.6m. Statutory net loss for that period was A$109.7m. The Q3 result suggests cost discipline is taking hold even as gaming revenue continues to decline year-on-year, a trajectory consistent with what some listed casino operators in other markets have also experienced as regulatory costs and consumer behaviour shifts weigh on land-based volumes — see, for example, the contrasting performance in Caesars Entertainment’s Q4 2025 results, where digital growth partially offset land-based softness.
WhiteHawk refinancing secures binding commitment
On March 27, The Star signed a binding commitment letter with WhiteHawk Capital Partners for a refinancing of its debt facilities. The A$550m package will replace existing senior debt in full and provide additional operating liquidity. The refinancing addresses a key going concern risk that had been flagged since at least the H1 FY26 results, when the company disclosed that a commitment letter had to be delivered by March 31 and the transaction executed by May 15, 2026 to avoid a default under the existing Senior Facility Agreement.
Available cash stood at A$90m at the end of March, down from A$130m at December 31, 2025. That reduction reflects normal operating cash usage and the absence of asset sale proceeds in the period.
In April, The Star completed the disposal of its 50% stake in the Destination Brisbane Consortium (DBC) joint venture to its Hong Kong-based partners, Chow Tai Fook Enterprises and Far East Consortium International. Completion of the DBC disposal was a key condition precedent for the WhiteHawk facility. Under the revised arrangement, The Star will remain casino operator at The Star Brisbane but will receive a fixed annual management fee of A$18m — replacing the previous A$5m monthly structure, a significant reduction in Brisbane fee income from the prior arrangement.
Brisbane exit and Queensland consolidation
The DBC disposal is the first stage of a broader restructuring under which The Star plans to consolidate its Queensland operations around The Star Gold Coast. The second stage — transferring jointly-held Gold Coast assets currently held with the Hong Kong JV partners — remains subject to separate conditions precedent.
The JV partners retain the right to terminate the Brisbane management contract with 90 days’ written notice, introducing ongoing uncertainty over the long-term revenue contribution from that property. Completion of the sale has, however, released The Star from its guarantee obligations under the Queen’s Wharf Brisbane debt facilities, removing one material liability from the balance sheet.
CEO Bruce Mathieson Jnr, appointed in December 2025, has been streamlining the corporate office and shifting support functions to property level as part of a cost restructuring programme. The group is continuing to pursue further cost reductions and revenue initiatives across its Sydney, Gold Coast, and Brisbane operations.
AustRAC judgment a remaining variable
The Star has flagged that its capital management strategy remains contingent on the quantum and timing of a forthcoming AustRAC judgment, which is yet to be handed down. The size of that judgment will directly affect liquidity planning and the completion timeline for the second stage of the DBC divestment — the Gold Coast consolidation. Investors and creditors will be watching the AustRAC outcome as a significant variable in the group’s ability to execute its restructuring on the timelines set by the WhiteHawk facility.
Regulatory supervision at the property level also remains in place. The New South Wales casino regulator has extended external management oversight over The Star Sydney, while Queensland’s special management arrangements for Brisbane and Gold Coast run into 2026. Australia’s broader regulatory environment for gambling operators has tightened sharply across multiple areas this year — a context that has shaped the operating conditions at the core of The Star’s results. For wider regulatory developments in the market, see Australia’s ACMA classification of prediction markets as gambling, another example of the regulatory assertiveness reshaping the Australian gaming sector.
Source: The Star Entertainment Group
