Star Entertainment Divests Non-Core Assets as Search for Liquidity Continues

The Star Entertainment Group announced that it selling non-core assets as the group desperately seeks to secure its financial position.

Star Sydney to Divest Its Event Center

In a release submitted to the ASX, the Australian casino and hospitality company confirmed that its New South Wales-facing branch, The Star Entertainment Sydney Properties, has secured agreements to sell some assets deemed to be non-core to the company’s business.

According to the announcement, these include The Star Sydney Event Center, as well as other additional spaces within The Star Sydney complex. The buyer, Foundation Theatres, has put forward $60 million for the transaction, subject to settlement adjustments.

Star Entertainment noted that the deal is still subject to the finalization of long-form transaction documents and certain customary conditions, such as government and regulatory approvals.

Star Entertainment clarified:

Foundation Theatres will pay a $60 million exclusivity fee in respect of the transaction into escrow on or before 31 January 2025 which will be released to The Star as consideration for the disposal subject to finalization of the long-form transaction documents and satisfaction of conditions.

Star Entertainment statement

The Star Is Happy to Sell the Assets to Foundation Theaters

Once the transaction has been completed, the consideration amount will be held in the group’s disposal proceeds account, which has been created under the terms of Star’s debt facility. It will notably constitute restricted cash.

The Star CEO Steve McCann commented on the matter, saying that his team is pleased to partner with Foundation Theaters.

The Star has worked closely with the team at Foundation Theatres since they acquired the sublease for the Sydney Lyric in 2011. We are pleased to partner with them as part of the continued evolution of our broad entertainment offerings at The Star Sydney.

Steve McCann, CEO, The Star

Star Entertainment expects to close the deal by February 28, 2025. McCann added that, in the meantime, the company is exploring sales of other non-core assets.

The Company’s Financial Trouble Worried Investors

The announcement comes shortly after Star Entertainment published its financial report for the second quarter of the fiscal year. In its report, the company outlined “limited” opportunities to raise funding in the absence of liquidity solutions.

The group’s overall metrics continued to decline amid economic and regulatory setbacks. While the company’s operating expenses also decreased due to the closure of Treasury Brisbane, Star Entertainment confirmed that fulfillment of its conditions for drawing the second tranche of its new facility remains elusive. The company confirmed that it is seeking external advice.

In any case, the company’s mixed results and precarious position have had a negative impact on its shareholders’ trust. Investors have gradually been losing tolerance, despite the leadership’s calls for patience. The rapid decline in the company’s available cash between September 2024 and December 2024 did little to improve this trend.

As a result, The Star’s shares have taken multiple blows, although the past few days have seen a slight rebounding.

Penn Entertainment Takes the Lead in Gaming Industry’s DEI Efforts

Penn Entertainment has grabbed the top spot in the newest All-Index report from the All-In Diversity Project, a yearly survey that looks at diversity, equity, and inclusion (DEI) work across various industries, including the gaming industry. This recognition shows Penn‘s dedication to creating a diverse and inclusive workplace setting an example for other operators to follow.

Companies in the Gaming Sector Elevate Performance with Strong DEI Focus

The All-In Diversity Project, a nonprofit group that aims to boost DEI in the global gaming industry, runs the All-Index survey to check companies’ policies and programs. Each company that takes part gets a score from 1 to 100, which helps them measure how they are doing now and plan for the future. The project says this year’s report does not just rank companies. It also takes a close look at what top firms did to succeed, including their practices and policies.

Penn Entertainment, the biggest regional casino operator in the US, beat major industry rivals like Entain and International Game Technology (IGT), which landed in second and third place. Last year’s rankings looked different, with Aristocrat at the top followed by Betsson, Kindred, and IGT. 

As the business scene keeps changing, DEI has an impact on many companies, including those in the gaming world. Studies show that firms with diverse staff tend to boost new ideas and improve how well they do. Companies that focus on including everyone are thought to be better at dealing with tough markets.

Gaming Industry’s DEI Report Adapts to Regional and Regulatory Shifts

This year’s All-Index report takes a new approach by letting government regulators and smaller firms join in. Also, it adds views from freelance experts and non-gaming groups giving a wider look at DEI practices. The updated method gives a more complete look at industry norms while keeping the scoring system.

A key insight from this year’s report shows how DEI strategies differ across regions. The study spotted clear contrasts in the way the United States, the United Kingdom, and other global markets put diversity initiatives into action. These differences have led the All-In Diversity Project to push for more location-specific DEI measurements and language to tackle local workforce trends more.

While the gaming world has made strides in diversity, DEI programs are facing more obstacles in the business world at large. Several big names like Amazon, McDonald’s, and Meta have cut back their DEI initiatives due to political and financial pressures.

However, companies such as Costco, Goldman Sachs, and JPMorgan Chase still push for workplaces where everyone feels welcome.As businesses juggle these changing priorities, Penn Entertainment stands out in the All-Index report as a top company in terms of workplace inclusion. By staying focused on diversity and fairness, Penn not only boosts its company image but also shows the way for other gaming companies.

Fitzdares to Part Ways with CEO Woodhams

Fitzdares, a leading gaming and betting company in the UK, is set to part ways with its chief executive officer William Woodhams. Speaking on his departure, Woodhams said that he “loved every second” of his time at the helm of the operator.

He is set to end his time as CEO on Friday.

Seven Years in Racing Is Equivalent to 70 Years in a Normal Job

Woodhams joined the Fitzdares family in July 2018, becoming CEO of one of the oldest bookmakers in the world. Fitzdares has been taking bets since 1882 and has cemented a strong position, especially among fans of horse races.

Prior to joining Fitzdaes, Woodhams served brand fame agency Mission as a board member. Before that, he had a three-year stint with French Connection, a global fashion retailer. Earlier still, he served luxury leader LVMH as sales and marketing manager for almost six years.

During his almost seven-year tenure as CEO of Fitzdares, Woodhams doubled down on horseracing betting, relishing in the dynamic ecosystem. Reflecting on his time with the bookmaker, he said that “seven years in racing is like dog years” – equivalent to 70 years in a normal job.

As CEO, he was responsible for getting the company through many difficulties, including the advent of COVID-19 and the economic and political instability in its aftermath. As if that wasn’t enough, the racing sector has been dealing with significant regulatory headwinds in the wake of the Gambling Act white paper.

Woodhams’ Departure Ends His Family’s Relationship with Racing

Woodhams, who loved every second of his time as CEO of Fitzdares, said that, while his time leading the company has been great, he believes it is time to move on. In an interview with the Racing Post, he said:

It has been fantastic and fun and I am very pleased we passed our Gambling Commission assessment and all of that but it is bloody hard work and I think it is time to let someone else have a go.

William Woodhams, outgoing CEO, Fitzdares

He added he believes that the horseracing community tends to be warmer than the soccer, cricket and casino communities.

On X, Woodhams posted that he decided to exit the racing sector shortly after Christmas. He also noted that his departure would, unfortunately, end his family’s 200 uninterrupted years within the racing industry. He said that he plans to work as a board member of Marble for the time being.

The Betting and Gaming Council said that Woodhams’ departure is a “huge loss to the racing sector.” The association thanked Woodhams for his incredible contributions to horseracing and wished him all the best for his “next adventures.”