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Read Full BioAustralia’s Star Entertainment Group revealed massive losses for the financial year 2025. Meanwhile, the company’s account showed that past and present executives were paid over AUD 10 million ($6.6 million) in the past financial year.
Star reported a net loss of AUD 471.5 million ($313 million) in its results for the financial year 2025 on Tuesday. Amid its financial struggles, CEO Steve McCann, who joined the company in June 2024, received approximately AUD 5 million ($3.3 million), including a AUD 2.5 million sign-on bonus.
The company admitted that McCann’s pay was not in line with “typical” market practice, and his remuneration would revert to a conventional structure in the next financial year.
Massive Losses as Star Faces Multiple Inquiries
The company experienced a revenue decline of approximately 29% compared to FY2024. Its revenue was $1.19 billion for FY25, compared to $1.68 billion during the 2024 financial year.
A significant portion of the company’s losses is attributed to ongoing actions against the company by Australia’s gambling regulators. AUSTRAC, Australia’s financial crimes agency, is expected to issue a fine of more than AUD 400 million (approximately $255 million).
Star is accused of anti-money laundering failures, and former executives Harry Theodore and Gregory Hawkins have been fined and disqualified from corporate management.
In addition to AUSTRAC, the company faces lawsuits from the Australian Securities & Investments Commission (ASIC) and an inquiry by the New South Wales Independent Casino Commission (NICC). The NICC has already fined the company AUD 15 million and suspended its license.
Multiple Executives Receive Huge Paydays
Despite facing financial turmoil, the company has dished out millions to its current executives. In addition to McCann, Chief Financial Officer Frank Krile received a signing bonus amounting to $655,000, as well as his $487,000 in pay since joining the group last December.
Interim Chief Financial Officer Neale O’Connell was paid $1.82M for his work in the role from March 2024 to March this year.
Star’s Sydney head Janelle Campbell received $850,000 in fixed pay, while the company’s Brisbane boss, Daniel Finch, pocketed $650,000.
The revelations are likely to damage the company’s already beleaguered image further. This, in turn, will lead to further financial difficulties. A deal to sell off 50% of its Queen’s Wharf Brisbane casino collapsed as Hong Kong investors pulled out, citing concerns over commercial issues.
Star Receives Debt Waiver to Survive, For Now
Even when adjusting for the additional costs of the regulatory investigations, Star made a normalized loss of AUD 215.5 million ($142 million).
The company stated that the introduction of mandatory carded play and cash limits at its Sydney venue had negatively impacted revenue. It also acknowledged that its remediation program, along with a decline in market share, has further contributed to its financial challenges.
As debts mount, the company announced it has secured a debt waiver of AUD 430 million (around $285 million). Earlier this year, Bally’s offered a lifeline as part of a $180.2 million (AUD 300 million) financial rescue package.
This latest move could also potentially lead the Mathieson family, who supported the Bally’s deal, to invest further in Star’s debt repayment efforts. However, the revelation that money is going towards executives, while their former staff are under criminal investigation, may put off any investors.
