Shares in Star Entertainment experienced a significant drop as trading resumed, leaving the casino giant in the hunt for a financial lifeline. The Australian Securities Exchange (ASX) observed a sharp fall in the company’s share value; a development that comes amid allegations of misconduct.
Star Entertainment has been subjected to a public hearing by the Independent Liquor and Gaming Authority (ILGA). The regulator is investigating potential breaches of Anti-Money Laundering and Counter-Terrorism Financing laws. Star Entertainment denies any wrongdoings.
In the face of these developments, the company’s shares were suspended from trading for five days. Upon resumption, they were seen falling 15.9 percent to $3.07. This drastic plunge marks the lowest price since the company’s 2011 debut on the stock exchange.
Star Entertainment has been facing financial concerns, resulting in an urgent need for a financial lifeline. The casino giant recorded a net loss of $94.6 million for the second half of 2021, compared to a profit of $32 million during the same period in 2020.
A formal review is currently underway, led by the Australian Transaction Reports and Analysis Centre (AUSTRAC). The review aims to reassess Star Entertainment’s compliance with financial laws.
Directors of the company maintain their belief in the robustness of the company’s compliance policies and processes. They remain committed towards cooperating fully with the regulatory investigation, asserting that Star Entertainment is upholding its responsibilities under the legal framework.
In the meantime, Star Entertainment continues its efforts towards securing a financial lifeline to weather through this difficult period. The company’s key stakeholders, including major shareholders and potential investors, are keeping a close eye on these developments.
Last modified: February 28, 2025
