Star Entertainment, one of Australia’s largest casino operators, is on the brink of collapse.
The company, which operates casinos in Sydney, Brisbane, and the Gold Coast, has warned that it only has $79 million left in its bank account.
So, how does a casino go broke?
In this episode of The Briefing, we speak with Charles Livingstone, a gambling expert and associate professor at Monash University. He explains how this situation is unfolding and what to expect in the months ahead.
The Star’s troubles began with a series of scandals, including ongoing investigations into money laundering at its venues.
Mr Livingstone said the two big Australian chains have been making money out of “effectively money laundering and the exploitation of vulnerable people to an extraordinary degree.”
“The money laundering has come in the past from large, what they call whales — big spenders at casinos who are, unfortunately, often fronts for international criminal syndicates,” he said.
Adding to the strain, major expansion projects, like the $3.6 billion Queen’s Wharf development in Brisbane, have blown out costs.
Meanwhile, stricter gambling regulations and fewer visitors to its casinos have led to reduced revenue.
“I think the 2023 annual report showed revenues of $1.8 billion, [the company] still made a fairly substantial loss. In the last financial year, they generated $1.7 billion and reported an even larger financial loss,” Livingstone added.
If the Star goes bankrupt, thousands of jobs could be lost across its properties.
The collapse would also impact investors and the broader economy, especially in Queensland and New South Wales, where the company’s casinos are major attractions.
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