Star Entertainment strikes WhiteHawk deal after turbulent losses
Australia’s Star Entertainment Group has reached a preliminary agreement with US-based private credit firm WhiteHawk Capital Partners in a fresh attempt to stabilise its finances after years of regulatory turmoil and heavy losses.
The casino operator said on Thursday it had agreed a non-binding term sheet with WhiteHawk for the proposed refinancing of all its existing debt. The plan would also provide additional liquidity to support the group’s turnaround strategy.
Star cautioned that the agreement is not yet final and may not lead to a binding credit facility. Both sides are working towards securing a formal commitment by the end of March 2026. In the meantime, the company is seeking temporary covenant waivers from its current lenders for December, giving it more time to complete the refinancing. It acknowledged that a successful outcome is not assured.
Deal after prolonged financial crisis
The move comes after a long period of regulatory and financial difficulties. Since 2021, Star’s casino operations in Sydney, Brisbane, and the Gold Coast have been investigated by federal and state authorities. AUSTRAC and state regulators identified serious shortcomings in the company’s anti-money laundering controls, which they said exposed its venues to criminal exploitation.
In 2022, the New South Wales Independent Casino Commission found Star unsuitable to hold its Sydney licence. The company was fined AU$ 100 million ($66 million), its licence was suspended indefinitely, and a special manager was appointed to oversee operations. That oversight has been extended into 2025. In Queensland, authorities deferred the suspension of Star’s Gold Coast licence until September 2026, citing slow progress in remediation and the company’s fragile finances.
Financial results have reflected the strain. For the FY25 ending 30 June 2025, Star reported a statutory net loss of AU$ 471.5 million ($311 million). Although narrower than the previous year’s AU$ 1.69 billion loss ($1.12 billion), the improvement was largely due to lower non-cash impairments. Normalised losses reached AU$ 259 million ($171 million), reversing a small profit the year before. Revenue fell 29 percent to AU$ 1.19 billion ($785 million), partly as a result of regulatory reforms, including mandatory carded play and cash limits introduced to strengthen compliance.
Latest quarter results offer hope
Performance in the first half of the 2026 financial year remained weak. Normalised net revenue fell 25 percent to AU$ 649.6 million ($429 million), while earnings before interest, tax, depreciation and amortisation showed a AU$26.4 million loss ($17 million). The statutory net loss after tax stood at AU$ 301.9 million ($199 million). More recent quarterly figures offered modest encouragement, with revenue rising five percent to AU$ 284 million ($187 million) and EBITDA losses narrowing to AU$ 13 million ($9 million).
Late last year, regulators approved a AU$ 300 million rescue package ($198 million) from Bally’s Corporation and Investment Holdings, which secured a controlling stake of more than 50 percent. That injection was intended to shore up the company’s balance sheet and restore confidence.
Star said the proposed refinancing with WhiteHawk would consolidate existing debt and provide fresh capital to support operational reforms. Management maintains that, with improved funding and regulatory progress, the group can return to stability. Whether lenders and investors share that optimism will become clearer in the coming week.
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