The New South Wales Government has extended the existing AU$5,000 ($3,100) daily cash transaction cap for gamblers at The Star Sydney until August 19, 2027, shelving plans to enforce a lower AU$1,000 limit that was initially scheduled to take effect in 2025. The move marks the second time the implementation of stricter cash controls has been delayed.

Concerns Over Jobs, Cash Flow, and Competitive Disparities

Originally set to come into force in August 2024, the lower limit was deferred for a year due to operational readiness issues raised by Star Entertainment and Crown Resorts. As stated in Star Entertainment’s ASX announcement (pdf), with the most recent extension, both operators now have two additional years to comply with the proposed cap. Under the revised timeline, the government has stipulated conditions such as continuous oversight of cash activity on gaming floors and regular reporting to Liquor & Gaming NSW on customer-related data.

“The government has now determined to continue this transitional arrangement … for another two years,” a government spokesperson explained. “The continuation of this arrangement was approved in recognition of several factors, including the effectiveness of other financial crime measures … along with concerns by casino operators about potential employment impacts.”

Both Star Entertainment and Crown had warned the NSW government earlier this year that enforcing the $1,000 cap too soon could push high-spending patrons toward less-regulated gambling venues such as pubs and clubs, where such restrictions don’t apply. Star in particular expressed concern that the limit would severely impact revenue and potentially threaten jobs.

Since the initial introduction of mandatory player ID cards and the AU$5,000 daily cap at Star Sydney, the operator reported a 10.7% decline in revenue over just four weeks. The financial implications have been severe for Star, which operates 1,500 poker machines at the Sydney venue—equipment that would require costly retrofitting to support a cashless model.

The financial hardship is compounded by the fallout from high-profile inquiries into money laundering at Star, Crown, and SkyCity Adelaide. These investigations triggered sweeping reforms, substantial penalties, and executive-level overhauls across all affected casino operators. NSW responded by implementing mandatory identification and cash usage restrictions on gaming floors—regulations that remain absent in pubs and smaller venues.

Mounting Pressures on Star Entertainment

Unlike Crown Resorts, which benefits from financial backing by Blackstone following an $8.9 billion acquisition in 2022, Star Entertainment has been in precarious financial territory. In April, the company narrowly avoided collapse by securing a $300 million funding agreement with Bally’s Corporation and the Mathieson family.

Star was also negotiating to offload its 50% stake in Brisbane’s Queen’s Wharf development in a bid to ease mounting debt obligations. Those talks have since fallen through, leaving the company accountable for over $350 million in project costs and facing $700 million in debt due for refinancing later this year. Star is additionally obligated to pay $10 million to its development partners by August 5 and another $31 million by September 6.

The operator disclosed AU$270 million in revenue for the quarter ending June 30, a steep 31% drop compared to the same period last year. Star did not confirm whether it was operating under safe harbour provisions, a measure that would offer temporary legal protection from insolvency proceedings.

The NSW Government’s latest decision does not come without oversight. Although the current AU$5,000 limit will remain in place through August 2027, authorities retain the right to reverse the extension at any point within the two-year window if necessary. In the interim, Star must comply with monitoring obligations and regularly submit data to Liquor & Gaming NSW concerning customer behaviors and cash use in its facilities.