Since 2021, the share price for Star Entertainment Group has collapsed from $3.76 to 13 cents today, wiping billions in market value. Whilst Brisbane has been holding ground, its Sydney Ricky Casino best online slots has experienced a fall in gambling turnover of 14 per cent year on year. To add further strain to profits, the New South Wales government is considering increasing taxes on gaming revenue.
The company has taken an appropriate approach to shareholder distributions with the suspension of dividends during the pandemic. The remains their intention until suitable providing it remains within its target leverage range at the time. The gaming sector Viva Las Venice deposit limits carries a set of constant risks including tax increases, ESG risks, and heightened regulatory scrutiny. Boosted by new developments in Queensland and a recovery from current headwinds, we project a 5% annual revenue growth for the five years ending fiscal 2029.
The second Bell report was commissioned in February and released today by the NSW Independent best Australian casino free money Commission (NICC). The financial crime regulator, Austrac, has identified similar failures at the Commonwealth Bank of Australia, Westpac and Adelaide’s Sky City casino. Turning to cyber risk, it is clear that firms such as Medibank and Latitude Financial have failed to protect sensitive customer data. For this sort of money, shareholders might reasonably expect some tough questions would be asked, especially given the red flags that came to light. The internal audit team or external independent advisers could have been charged with further investigating issues of concern.
Oxfam's latest inequality report has found the world's top Australian crypto casinos with instant payouts 10 richest people (all men) made a whopping $150 million a day last year. The gains were largely across the board with 128 companies making gains, 65 losing ground and 7 going nowhere from Friday's close. The company drew down the first $100 million of a new loan facility in early December, but has raised concerns about its ability to meet the conditions required to access a further $100 million. Just a quick update on the waxing and waning fortunes of Donald and Melania Trump and their recently launched meme coins we've been following today. Oxfam Australia is calling on the federal government to introduce a wealth tax of between 2 and 5 per cent on the super-rich.
The company’s core asset, the CrownPlay ethereum casino games in Sydney historically generated most of the group’s earnings as the city’s only casino. This monopoly was toppled in 2022 as Crown Resorts entered the scene in a major blow to star. Here's how the day's trade unfolded, with insights from our business reporters, on the ABC News markets blog.
Buying time ahead of an expected equity raise in fiscal 2025, the company raised $200 million in emergency debt facilities at a sharp 13.5% per year. Star’s balance sheet is in precarious condition after their 8th Jan update. Elevated remediation costs in fiscal 2023, poor performance and fines increased led to two dilutive capital raises in 2023 at $1.20 and $0.60 per share. In our view, the NSW government’s issue of the second casino license in Sydney stemmed from underinvestment and underperformance in The Star Sydney, depriving the state of taxation revenue. Star spent ~$500 million improving its Sydney facilities ahead of Crown Sydney’s opening however it was too little too late. We estimate that 30% of table revenue will be conceded to Crown Casino login Sydney within three years of the competitor’s operation. Fears circulate for Star after recent spending suggests the operator would be lucky to survive till their interim results expected late February.
In morning trade, the casino operator's shares are down a massive 19% to $1.52. Star Entertainment chairwoman Anne Ward attended 45 board meetings (of a possible 46) of the distressed casino operator in the 2024 financial year. Necessitated by Star Entertainment being a dumpster fire (which might be unfair to dumpsters and/or fires).
Consumer discretionary shares led the market sectors amid positive retail and inflation data last week. Of the ASX 200 companies reporting this morning, investors have been pleased with Ansell (+6.8%) while JB HiFi (-2.5%), and Car Group (-6.2%) have not impressed, both facing tighter margins. That's after Donald Trump told reporters that he planned to hit steel and aluminium imports — it appears investors are treating it as a potential positive for BlueScope, which has US operations. Tech company WiseTech Global's share price has slumped after fresh allegations were aired against billionaire founder Richard White in Nine Newpapers this morning. She said "it's questions of that kind" against the risk of losing a casino license that the board should have asked. The operator had planned to sell its 50 per cent stake in the Brisbane complex to its business partners, but the talks have broken down. Star has arguably underinvested in its Sydney casino, however the $500 million sunk in improving its VIP gaming segment is unlikely to deter Crown casinos from capturing 60% of its VIP market share by fiscal 2025.