Star Entertainment losses now top A$735 million across two years. In August 2026, the casino group reported a A$307 million loss. Both its directors and its auditors also flagged serious doubt about whether the business can survive.
However, none of this came without warning. In fact, there were at least three clear warnings. So what did each one say, and why did the losses keep growing?
Warning one: the report nobody acted on
First, an external KPMG report found weaknesses in how Star managed money laundering risk. In March 2026, the Federal Court found that former CEO Matt Bekier breached his duties. Among other things, the court said he failed to properly deal with that report (ASIC, 5 March 2026).
In other words, the warning existed. It reached the top. Yet the court found the CEO didn’t handle it properly.
Warning two: the headlines about a rival
Next, media reports about Crown and the junket operator Suncity put the whole industry on notice. The court found Bekier failed to manage the risks from Suncity’s private gaming room at The Star, even after he knew of those reports.
The court also found that former Chief Legal and Risk Officer Paula Martin breached her duties. By contrast, it dismissed ASIC’s case against seven non-executive directors (ASIC, 5 March 2026).
Warning three: the licence
Then came the biggest warning of all. An independent inquiry into Star’s links with junket operators led the regulator to suspend The Star Sydney’s casino licence in 2022 (IAG, March 2026).
In September 2026, reports said the suspension now runs to June 2027. Meanwhile, a regulator-appointed manager still runs the property.
Star Entertainment losses in 2025 and 2026
Star reported a net loss of A$427.9 million for FY25. It then reported a further A$307.3 million loss for FY26 (ABC News, 31 August 2026).
Its FY26 accounts also warn of significant doubt about its ability to continue as a going concern. On top of that, AUSTRAC is seeking a A$400 million penalty over anti-money laundering failures. The court has not yet decided that case.
The statistic behind the pattern
In February 2026, Corporate Board Member published its What Directors Think 2026 report, based on more than 200 public company directors. It found that 53% of directors don’t often get real-time data between meetings. Also, 47% want more frequent risk discussions instead of management presentations.
That’s the gap every warning at Star had to cross. The information existed. Still, it reached the board late, filtered, or not at all.
Star’s response
Today, Star has new owners and new leaders. Bally’s Corporation and Investment Holdings took a controlling stake in late 2025. Group CEO Bruce Mathieson Jnr said the company now runs a more accountable, property-led model. He added that it has a renewed focus on performance, customers and responsible operations.
Star also says revenue steadied in the June 2026 quarter. As a result, it expects to start building cash in FY27.
What MoodyBot could have saved from the Star Entertainment losses
MoodyBot, the AI layer inside Moody At Work, reads anonymous daily mood check-ins across teams. It doesn’t review audit reports or monitor transactions. Instead, it tracks how people feel at work every day, with no names attached.
All three warnings above came from outside the business. However, people inside often sense a problem much earlier. At Star, MoodyBot could have flagged pressure in compliance, risk and VIP gaming teams. It could also have shown check-in reasons clustering around being told to look away or not being heard.
That would have been a fourth warning. Better still, it would have come from Star’s own people, in real time, between board meetings.
| Risk | Publicly reported loss | Model assumptions | What MoodyBot could have saved |
|---|---|---|---|
| Net losses | A$427.9m (FY25) plus A$307.3m (FY26), total A$735.2m | 15% to 30% linked to culture and governance failures (trading, debt and remediation also played a role); 20% to 40% chance early signals lead to action | A$22.1m to A$88.2m |
| AUSTRAC penalty | A$400m sought; decision pending | Not yet a loss | Not counted |
| Sydney licence | Suspended since 2022 | Revenue impact not separately disclosed | Not quantified |
| Going concern risk | Directors and auditors flag significant doubt | Not measurable in dollars | Not quantified |
| Total quantified | A$22.1m to A$88.2m |
How we built the numbers: A$735.2m x 15% x 20% gives A$22.1m. Likewise, A$735.2m x 30% x 40% gives A$88.2m. We kept the early action probability low because these failures sat at executive level. There, anonymous team data has less reach than it does on the front line.
What every board can learn
Three warnings came from outside Star. Each one arrived later and cost more than the one before. Therefore, the cheapest warning is always the one from your own people. It only helps, though, if it reaches the board in time to act.
For another story about ignored warnings, read about the KPMG Australia whistleblower scandal.
Star Entertainment losses FAQs
How much has Star Entertainment lost? Star reported a net loss of A$427.9 million in FY25 and A$307.3 million in FY26. Together, that’s more than A$735 million.
What did the court find about Star’s former executives? In March 2026, the Federal Court found that former CEO Matt Bekier and former Chief Legal and Risk Officer Paula Martin breached their duties. It dismissed the claims against seven non-executive directors.
Do boards get the information they need in time? According to Corporate Board Member’s 2026 report, 53% of directors don’t often get real-time data between meetings.
Sources: Corporate Board Member, What Directors Think 2026 (10 February 2026); ASIC (5 March 2026); ABC News (31 August 2026); IAG (March and August 2026); PokerNews (September 2026).
All factual claims are sourced from publicly available reporting. The Star Entertainment Group’s representatives have stated that the company has moved to a more accountable, property-led operating model with a renewed focus on performance, customers and responsible operations. MoodyBot projections represent an independent illustrative probability model based on publicly reported information and are not guaranteed outcomes.