However, the company’s poor Blackcoin trading performance potentially makes it more difficult to secure the $150m of additional external funding needed to trigger the payment of the second $100m tranche of the $200m loan. Two months ago, Mr McCann secured a $200m, two-tranche bailout from lenders to prevent a possible collapse of Star. "This is attributable to the on going challenging consumer environment and changes in business practices which continue to weigh heavily on gaming, particularly in the premium player segment," he said. As Star’s search for a white knight steps up, a potential newcomer to the Australian gaming industry has taken a look at its casinos. "We need to implement those, and we need to make sure that we understand what the revised revenue model is for our business across gaming and non-gaming over time," McCann said at the meeting. "I would note that the regulatory environment and challenges of technology upgrades and other matters we’re dealing with in Australia are quite unique to the Australian market.
Star’s woes are all the more startling given its former dominance in a country that loses more money gambling per capita than any other in the world. After a series of damning inquiries, Star casinos in New South Wales and Queensland are being overseen by government-appointed caretakers. According to Morningstar, Star is so financially fragile it may not survive beyond February without some kind of lifeline. Regulatory inquiries have found it unsuitable to operate its Sydney and Queensland casinos, placing them under government supervision. Almost A$4 billion (S$3.4 billion) has been wiped from Star’s market capitalisation since late 2021, leaving the company valued at just A$387 million. It has forced everything from the introduction of carded play to the breaking of ties with the offshore junket operators that shipped in the high-roller players from China.