By Rajasik Mukherjee

(Reuters) -Star Entertainment reported a narrower full-year loss on Friday, but high remediation costs and weak patron spending kept the cash-strapped casino operator dependent on lenders, regulators and the government to fend off any "challenges".

The casino operator posted a statutory net loss after tax of A$471.5 million ($306.4 million) for the year ended June 30, compared with a loss of A$1.69 billion a year earlier.

The result, however, fell short of analysts' estimate of a A$244.5 million loss, according to data from Visible Alpha.

"Group continues to require significant support from a range of its stakeholders, including governments, regulators, lenders and investors," said group CEO and managing director, Steve McCann.

"Without that support, it will be difficult to navigate the various challenges facing the Group."

The company's lackluster performance underscores the regulatory challenges facing the group since 2021, when authorities launched probes into potential breaches of anti-money laundering and counter-terrorism financing laws.

"Star Entertainment's long-delayed FY25 results confirmed the dire picture already painted by analysts... Star remains pinned under debt disputes and regulatory headwinds, leaving investors staring at dilution risks or worse," said Mark Gardner, founder & CEO of MPC markets.

According to the company, soft trading conditions persisted through July, particularly at its suspended Star Sydney property, the firm's flagship property, which logged an annual operating loss of A$86.3 million.

The cash-strapped firm said it had A$234 million in capital as of June 30, up from A$98 million in available cash reported during interim results on April 11.

It has been exploring asset sales to shore up its dwindling cash reserves, with the latest move being a partial selldown of its stake in the Brisbane resort.

However, its efforts to stay afloat have faced setbacks, as refinancing proposals from U.S.-based Oaktree Capital Management and Melbourne-based investment firm Salter Brothers failed to materialise.

($1 = A$1.5389)