Star Entertainment Group has secured a crucial funding lifeline of up to $200 million to address its ongoing financial distress as it prepares to announce disappointing financial results for 2024.

The company reported a staggering statutory loss of $1.685 billion for the fiscal year, although this marks an improvement from a loss of $2.44 billion the previous year.

This financial turmoil is largely attributed to a decline in gambling spending amid rising living costs and increasing operational expenses.

Trading conditions worsened significantly in the latter half of the year, with the company incurring losses of nearly $8 million in July and August.

Recent regulatory changes in New South Wales and Queensland regarding cash limits and carded play have added further risks to Star's future earnings.

Star's shares have been suspended on the Australian Securities Exchange since late August due to failures in presenting its accounts, and when trading resumed, shares plummeted over 50%.

In response to its financial crisis, Star is implementing various initiatives to improve business performance, including cutting hundreds of jobs and exploring the sale of non-core assets.

New CEO Steve McCann, who took over in June, has acknowledged the significant challenges facing the business, particularly regarding earnings, liquidity, and balance sheet health.

Morningstar has noted that the earnings collapse was worse than expected, prompting a one-third reduction in its 2025 earnings forecast for Star.

As part of its recovery strategy, Star is also burdened with penalties for past misconduct and is facing a shareholder class action lawsuit.

The new loan is structured in two tranches, with the first expected to be drawn next month to manage cost overruns at its Brisbane casino precinct.

The agreement for the loan follows extensive discussions involving McCann, lenders, investors, and state governments, amid concerns of potential insolvency.