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The struggling Star Entertainment group has missed a major deadline in a deal it hoped would offload its stake in Brisbane's Queen's Wharf project. "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 said. The casino operator also remains embroiled in legal challenges, with the financial crimes regulator AUSTRAC seeking a $400 million penalty against the company for alleged money laundering, in a court case that kicked off earlier this month. "There is a lot of cliff-top poker going on here with Star Entertainment still a chance of going into administration." The deal falling over would leave Star saddled with those costs, as it attempts to turn its business around with the backing of Bally's. "It's loaded with $650 million of its own debt, is still less than 50 per cent operational and requires hundreds of millions of dollars in additional capital expenditure to complete," Mr Mayne noted. The termination notice will come into effect next Monday unless it is withdrawn within five business day.
It will be completed in two stages with the exit from Queen’s Wharf first and a sunset date of November 30. "As Brisbane prepares for the 2032 Olympic and Paralympic Games, we remain steadfast in our resolve to ensure QWB delivers lasting value for the people of Queensland." Joint managing director of the Far East Consortium Wendy Chiu said the deal was a major milestone for the Queen’s Wharf casino, and the agreement would safeguard about 2700 jobs.
"The investigation found insufficient evidence that a historical business association between Mr Ao Ieong and Wan Kuok Koi (Broken Tooth) had continued past 2012," an OLGR spokeswoman said. This led the Queensland regulator to conclude CTFE had a "legitimate business association" with Mr Ao Ieong. "We are friends. But we don't have any business connections or cooperation anymore."
Kaine Kennedy, a bartender, said he would make $2 an hour more doing the same job at the company’s Sydney casino. Brisbane staff earn considerably less than their counterparts in Sydney. "The latest news once again increases uncertainty for members. We're seeking further information from the company about this announcement," he said. "At the core of the issue is the transfer of a major casino licence to a new ownership structure," he said. The government would not say whether it held concerns about Queen's Wharf employees working under owners with chequered legal histories, but said jobs and staff welfare were top priorities. The company has told investors it has made a deal with its Hong Kong partners, surrendering its share in Queens Wharf.
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The following year, regulators ruled that the company was unsuitable to operate its casinos in Sydney and Queensland, placing them under government supervision. The troubles of Star started in 2021 after the Sydney Morning Herald reported that the company allowed money laundering and organized crimes in its casinos for years. The company is exploring various options to increase its liquidity, but it has limited capacity to raise A$150 million in subordinated debt. The company said that it will continue its discussions with Chow Fai Fook and Far East Consortium to explore a potential sale of its stake in the Brisbane property on acceptable terms but notes that no transaction is guaranteed. It includes a pilot program to pay professional foster carers up to $100,000 and building a new $50 million "SecureCare" facility for high-risk children with mental health. However, Shadow Attorney-General Tim Nicholls questioned whether it was "good governance" to financially support the company given it remained under a cloud. The company remains in a trading halt on the Australian stock exchange after delaying the release of its annual results.
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