Star Entertainment FY26 Results: Recovery Underway, But Major Risks Remain

Star Entertainment’s financial year 2026 (FY26) results landed on the Australian Securities Exchange (ASX) this week, in one of the more significant filings in Australian gambling news lately. They tell two stories at once. One is a genuine turnaround: losses narrowing, cash flow finally turning positive, and a AUD 300 million lifeline from Bally’s Corporation fully banked.

The other is a company still carrying enormous uncertainty. Both its Sydney and Gold Coast casino licences remain suspended.

A pending penalty from the Australian Transaction Reports and Analysis Centre (AUSTRAC) could run as high as AUD 400 million. Here’s what the FY26 numbers actually show, and why “green shoots” doesn’t mean the company is out of the woods.

Key Insights: Star Entertainment FY26 Results at a Glance

• Star Entertainment’s FY26 net revenue was AUD 1,101.0 million, down 2.2% year-on-year, with a statutory net loss of AUD 307.3 million, an improvement on the AUD 427.9 million loss the year before.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) loss narrowed to AUD 16.1 million from AUD 76.2 million, delivering Star Entertainment cash flow positive results for the first time in years.
• Bally’s Corporation and Investment Holdings completed their AUD 300 million strategic investment, converting notes into 3.75 billion new shares.
• Both The Star Sydney’s and The Star Gold Coast’s casino licences remain suspended, with oversight extended to 30 September 2026.
• AUSTRAC’s civil penalty case is still awaiting judgment. AUSTRAC has argued for AUD 400 million; Star has argued for a figure above AUD 100 million, citing liquidity constraints.

What Do Star Entertainment’s FY26 Results Actually Show?

Chairman Soo Kim called FY26 the year Star saw its “first green shoots” after years of crisis. The financial results back that framing up, even if the company is still deep in loss territory:

• Net revenue of AUD 1,101.0 million, down 2.2% on the prior year, driven mainly by a 5.3% decline in gaming revenue from softness in table games.
• EBITDA loss of AUD 16.1 million, a major improvement on the AUD 76.2 million loss in FY25.
• Statutory net loss after tax of AUD 307.3 million, down from AUD 427.9 million the year before.
• Slots revenue up 3.5% to AUD 412.7 million, while table games revenue fell 14% to AUD 343.5 million.
• Cash and equivalents of AUD 367.6 million at year end, with the business reporting cash flow positive results for the first time in years.

Property by property, The Star Gold Coast was the clear bright spot, with EBITDA up 69.7% to AUD 37.0 million. The Star Sydney remained the weak point, posting an EBITDA loss of AUD 32.7 million on revenue down 9.3%.

The Bally’s Investment Behind Star Entertainment’s FY26 Turnaround

None of this recovery happens without Star’s recapitalisation. The Bally’s Star Entertainment investment, jointly committed with an entity tied to Bruce Mathieson’s family interests, totalled AUD 300 million to keep Star afloat:

• Bally’s contributed the final AUD 66.7 million instalment in October 2025, completing its side of the AUD 300 million commitment.
• Convertible notes from both investors converted into 3.75 billion new shares in November 2025, cementing Bally’s and Mathieson-linked interests as major shareholders.
• Bruce Mathieson Jnr moved from board observer to Group CEO and Managing Director, taking the top job in December 2025 as part of a broader board and leadership overhaul that also brought in new property-level executives across Sydney, Gold Coast, and Brisbane.
• A new 390 million US dollar term facility was executed in May 2026, replacing Star’s prior syndicated facility and funding ongoing operations.

Without that capital, the “green shoots” story simply doesn’t exist. Star was burning cash fast enough in prior years that a full recapitalisation was the only way to avoid a much darker outcome.

Star Sydney and Gold Coast Licences: Where Things Actually Stand

Here’s the part of the FY26 report that tempers the good news considerably. Star’s core business, the actual casino licences, remains under a cloud in both states where it operates:

• Star Sydney casino licence suspended status has held since 21 October 2022, with a Manager appointed by the NSW Independent Casino Commission (NICC) overseeing operations. That arrangement has been extended to 30 September 2026.
• The Star Gold Coast’s licence suspension has been deferred since December 2022, with a Special Manager’s term also extended to 30 September 2026.
• The Star Brisbane holds an unconditional licence, issued in August 2024, though it still operates under an External Adviser whose term runs to the same September 2026 deadline.

Both properties keep operating and generating revenue while under this oversight. The company’s future path back to fully unsupervised licences depends entirely on regulators being satisfied that its remediation work has genuinely stuck, not just looked good on paper.

The AUSTRAC Penalty Still Hanging Over Star Entertainment’s FY26 Results

The single biggest unresolved risk sitting over Star’s FY26 results is the AUSTRAC penalty Star Entertainment now faces, a case that has been running since November 2022, when AUSTRAC first launched civil penalty proceedings alleging serious anti-money laundering failures.

The numbers on the table are stark. AUSTRAC has submitted that a AUD 400 million penalty would be appropriate. Star has argued that anything above AUD 100 million, payable within twelve months, would be genuinely difficult given its available liquidity.

The court heard the case back in June 2025, and a judgment is still pending. Star has booked a provision on its balance sheet, but the company itself admits any actual penalty “may differ materially” from what’s been set aside.

This isn’t Star’s only compliance headache either. Our earlier coverage of TICO machine payout errors at The Star Sydney points to a pattern of operational and compliance issues that predates and runs alongside the AUSTRAC case.

Responsible Gambling: What Star Entertainment’s FY26 Report Reveals

Behind the balance sheet, Star’s FY26 report does detail real safer-gambling investment, and it’s worth separating that from the financial headlines:

• Predictive analytics paired with frontline staff observation, aimed at identifying signs of gambling harm earlier than manual checks alone.
• A broader set of pre-commitment tools, including activity statements, exclusion pathways, and time-play management measures.
• A zero-tolerance framework for minors on gaming floors, though this is the same area where Crown Sydney’s own compliance recently failed with a 16-year-old using a fake ID.

Corporate safer-gambling frameworks matter, but they’re not a substitute for your own limits. Whatever a casino’s remediation report says, responsible gambling still starts with decisions an individual player makes before they walk onto the floor or open an app.

What’s Next for Star Entertainment After FY26?

The next twelve months carry more consequence for Star than the FY26 numbers themselves. A few dates and outcomes are worth watching:

• 30 September 2026 is when the current Manager and Special Manager arrangements in New South Wales (NSW) and Queensland are due to be reviewed.
• The AUSTRAC judgment remains outstanding, and its size will materially affect Star’s capital position regardless of how operationally solid FY26 looked.
• Stage 2 of the Destination Gold Coast Consortium transaction is expected to complete by 31 March 2027, further reshaping Star’s balance sheet.
• An Australian Securities and Investments Commission (ASIC) case against two former executives, Matt Bekier and Sarah Martin, is under appeal after the Federal Court found against them in March 2026.

More AU Gambling Coverage

This story connects to our earlier coverage of Star Entertainment’s leadership changes, its TICO machine compliance failure, and the broader pattern of AUSTRAC scrutiny across major Australian gambling operators, all linked above. Keep up with all our latest Australian gambling news as these stories develop.

The Bottom Line on Star Entertainment’s FY26 Results

Star Entertainment FY26 results genuinely support the “green shoots” framing Chairman Soo Kim used. Cash flow turned positive, losses narrowed significantly, and the Bally’s recapitalisation gave the company real breathing room.

None of that changes the fact that both major casino licences remain suspended and a penalty potentially worth hundreds of millions of dollars is still sitting on the horizon. Improving operationally and being fully back on solid ground are two very different milestones, and Star has only reached the first one. We’ll keep following this one as the AUSTRAC judgment approaches.

Star Entertainment FY26 Results: Quick-Fire FAQs

How much did Star Entertainment lose in FY26?

Star Entertainment reported a statutory net loss after tax of AUD 307.3 million for financial year 2026 (FY26), an improvement on the AUD 427.9 million loss recorded in FY25.

Is Star Entertainment’s casino licence still suspended?

Yes. Both The Star Sydney’s and The Star Gold Coast’s casino licences remain suspended, with regulatory oversight arrangements extended to 30 September 2026.

How much could Star Entertainment’s AUSTRAC penalty be?

AUSTRAC has argued for a AUD 400 million penalty in its civil case against Star Entertainment, while the company has argued that anything above AUD 100 million would be difficult given its liquidity. A court judgment is still pending.

Did Star Entertainment’s Bally’s investment go through?

Yes. Bally’s Corporation and Investment Holdings completed their combined AUD 300 million strategic investment, with convertible notes converting into 3.75 billion new shares in November 2025.

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