Star Entertainment, the beleaguered Australian casino operator, faces a new setback as its deal to exit the Queen’s Wharf casino and hotel complex in Brisbane is on the verge of collapse.
The company’s joint venture partners, Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium, each holding a 25% stake, have threatened to terminate the agreement to purchase Star’s 50% stake for $53 million, which would have also given Star full control of its Gold Coast project.
The partners issued a termination notice, effective next Monday unless withdrawn within five business days.
Far East Consortium stated that Star Entertainment must repay $10 million within 30 days of termination or transfer its one-third stake in the Gold Coast hotel project. Star Entertainment did not immediately confirm the repayment details.
“Since the recent general meeting, the parties continued to negotiate to finalise the long form documents, but as of this morning, have not reached an agreement on the outstanding commercial issues,” said Star in a statement to the ASX.
Despite the setback, Star has vowed to continue negotiations with its partners. This latest development follows last week’s shareholder approval of a A$300 ($195) million rescue package from US casino giant Bally’s and existing investor Bruce Mathieson.
Star Entertainment’s Hong Kong investors have threatened to walk away from the deal for Brisbane’s new Queen’s Wharf casino and hotel complex, with sources citing disputes over key parts of the original agreement. https://t.co/tT9ucT407a
— Financial Review (@FinancialReview) June 30, 2025
Sort out the mess and resolve ownership for the long-term
Financial commentator Stephen Mayne described the situation as “cliff-top poker” for Star’s survival, suggesting the Hong Kong partners may be seeking last-minute concessions from the Queensland government.
The Queen’s Wharf project, burdened with $650 million in debt and less than 50% operational, requires significant additional capital to complete the development.
If the deal collapses, Star Entertainment will be responsible for funding half of Queen’s Wharf’s completion, a scenario not anticipated (or wanted) when shareholders approved the Bally’s and Mathieson deal. Mayne warned that this could push Star toward bankruptcy.
Adding to its woes, Star faces a $400 million penalty from AUSTRAC for alleged money laundering in an ongoing court case. Mayne noted that Star has endured a “five-year pile on” from Queensland, NSW, and federal governments, including hefty fines, higher taxes, license suspensions, multiple inquiries, and mandatory cashless gambling not imposed on competing venues.
Mayne urged the governments to negotiate a comprehensive deal with Star and its Queen’s Wharf partners to resolve the ownership and operation of the different venues:
“It’s time all three governments sat down with the company and its Queen’s Wharf joint venture partners and thrashed out one over-arching deal that sorts out the mess and resolves who will own and run the Sydney, Brisbane and Gold Coast casinos over the longer term,” he added.
Image credit: Star Casino
