The Star Entertainment Group Ltd (ASX: SGR) share price hit a new all-time low on Thursday.
The casino operator closed the session at an intraday trough of 91 cents per share, down 5.7%.
This makes Star Entertainment the second biggest faller among ASX 200 shares today.
Why is the Star Entertainment share price tumbling?
Star Entertainment is going through a tumultuous time.
Two separate inquiries in NSW and Queensland have found the company unsuitable to hold a casino licence amid allegations of monetary laundering and other illegal activity at its venues.
As a result, it copped $100 million worth of fines.
Star Entertainment is now in the process of overhauling its operations and company culture to repair its reputation.
This includes a major remediation program to regain its status as a suitable licence holder.
This program will cost more than $100 million over the next few years.
Meantime, the Star Entertainment share price is down 45.5% in the year to date.
During the recent earnings season, the company reported a statutory net loss of $2.44 billion for FY23 amid weakening demand as Australians tighten their belts in response to the cost of living crisis.
Despite all this drama, a few brokers reckon the Star Entertainment share price is a buying opportunity.
Star Entertainment share price to outperform: broker
Top broker Macquarie reckons the Star Entertainment share price today is a buy.
Macquarie has slapped an outperform rating on the stock with a 12-month price target of $1.25.
Another broker, Jefferies, also has a buy rating on Star Entertainment with a share price target of $1.33.
This implies a potential upside of between 37% and 46% for investors who buy Star Entertainment shares today.
Among the nine analysts on the Westpac Trading platform covering Star Entertainment, six rate the stock a strong buy, two rate it a moderate buy, and one says hold.
What's next for Star Entertainment?
Star Entertainment's remediation program is expected to cost between $35 million to $45 million in FY24.
This is in line with FY23.
Remediation will remain an ongoing annual cost at about this level until FY26 when the cost is expected to reduce by half.
Meanwhile, Star hopes to complete and open its new Queen's Wharf Brisbane casino in FY24.
The new casino will replace Treasury Casino and Hotel, which will be converted into a hotel and shops.
Star is also building a second tower for The Star Gold Coast venue.