Star Entertainment’s Gold Coast casino licence suspension deferred until 2026

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(Reuters) -Australian casino operator Star Entertainment Group said on Thursday that the Queensland government had deferred the suspension of its Gold Coast casino licence to September 30, 2026. 

The cash-strapped casino operator said the government also extended the appointment of an external advisor for Star Brisbane until next September.

The deferral comes after regulator-appointed Special Manager Nicholas Weeks, who oversees Gold Coast’s operations, submitted a report stating that Star has made “steady progress” on its remediation efforts, but it was slower than anticipated due to the group’s financial issues.

Weeks’ appointment has also been extended to September 30 next year.

The company has faced regulatory challenges since 2021, when authorities launched probes into potential breaches of anti-money laundering and counter-terrorism financing laws.

Since then, the company has struggled with mounting debt and weak patron spending, which has resulted in low cash reserves, driving it to explore asset sales.

In August, the Australian firm revived a previously sidelined deal to sell a 50% stake in the A$3.6 billion ($2.37 billion) Brisbane resort for A$53 million to its Hong Kong-based partners.

But cash flow remains an issue for Star, which said it was discussing potential waivers on loan covenants with lenders, without divulging more financial details.

For the full year ended June 30, Star managed to narrow its losses but failed to meet analysts’ estimates, according to data from Visible Alpha.

Shares of the company jumped during the final 10 minutes of trade settlement, following the announcement, to finish in green on Thursday.

The stock has lost more than 50% in value so far this year.

($1 = 1.5168 Australian dollars)

(Reporting by Sneha Kumar in Bengaluru; Editing by Sonia Cheema and Rashmi Aich)