The Star Entertainment Group is planning legal action over a business interruption claim for the shutdown of its casinos following Government-ordered closures earlier this year.

CEO Matt Bekier told an earnings briefing that the company was still pursuing the matter against its insurers, after advising the market in April that it had lodged a claim under its policy.

“This is obviously not a slam dunk, but we think we have a reasonable position,” he said yesterday.

“This is not a pandemic claim because we have an insurance policy wording that creates very specific opportunities around the nature of the shutdown that was forced on us, so on that basis we think we have got a reasonable prospect.”

A filing with the courts has not been finalised, but the company is seeking declaratory relief, a spokesman told insuranceNEWS.com.au today. The Star did not provide further details of the insurance cover.

The Star halted its gaming activities in Sydney, the Gold Coast and Brisbane on March 23 as governments ordered shutdowns to control the COVID-19 outbreak.

In the eight months to the end of February the company’s normalised earnings before interest, tax, depreciation and amortisation (EBITDA) had increased 12.1% and Mr Bekier said growth had been accelerating.

By the end of the financial year EBITDA was down 22.8% to $430 million and the group reported a statutory net loss of $95 million.

Chairman John O’Neil said The Star delivered record normalised and domestic earnings for July to February, compared to the previous corresponding period, before the full impact of COVID-19.

“The Star remains committed to maintaining a balance sheet that positions the group for the post-COVID-19 recovery,” he said.

The group’s Sydney casino commenced a “highly restricted” reopening on June 1 while Queensland reopened from July 3.