The Star Entertainment Group has posted a $1.26 billion loss for the first half of the 2023 financial year, driven by fines and major losses at its Sydney casino.
That's compared to a $74 million loss during the same period a year earlier.
Half-yearly financial results, released to the ASX on Thursday, included $1.3 billion in what the company describes as one-off costs, like the expected changes to taxes, $350 million in fines and the expense of ongoing reviews and new systems to fix problems.
That "one-off" figure could have been much bigger, because the sale of two properties counted against it.
The major factor behind the loss is $800 million in equity raising to repay debt and increase liquidity.
Domestic revenue was also down 14 per cent compared to pre-pandemic levels at Star's Sydney casino.
The report says the poor performance is reflective of increasingly restrictive operational requirements and amendments to the state's Casino Control Act.
It also mentions increased competition for its Sydney casino from the opening of Crown Sydney, at Barangaroo.
Star said it was urgently working on regaining suitability to hold casino licences in NSW and Queensland, after reviews into money laundering, fraud and criminal activity.
Its licence in NSW has been suspended and it was fined $100 million, although, the company was still able to keep its gaming floor open as long as it appointed a new manager to oversee its gambling business.
In Queensland, the company was last year fined $100 million and given a year to show why its licence to operate casinos shouldn't be suspended.
Financial statements show Star Sydney has lost almost $1 billion as a result of regulatory changes and fines.
"The Sydney property is in a state of significant uncertainty," the financial statements read.
"Recent regulatory changes have increased compliance costs and the Group has paused international and domestic rebate business.
"Further, proposed increases to casino duty rates could materially alter the profitability of the business.
"In combination, these factors have reduced the valuation of the Sydney cash generating unit, requiring an impairment of $988.4 million to be recognised at 31 December 2022."
Financial crimes agency AUSTRAC has commenced civil penalty proceedings against Star Entertainment Group over breaches of anti-money laundering laws, which could see the company fined billions more.
Managing director Robbie Cooke has previously said the group was "transforming" its culture and business.
Meanwhile domestic revenue for The Star Gold Coast is up 30 per cent, a record for the venue, and Treasury Brisbane posted a 9 per cent increase on the same measure.
