Star to pay back $41 million after lifeline casino deal collapses
A deal which would have seen Star Entertainment's share in Brisbane's Queens Wharf development sold to its foreign based partners has officially fallen through.
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ABC News
13-08-2025
- ABC News
Queen's Wharf job fears as Star seeks approval for casino deal
A deal between gambling giant Star Entertainment and its partners in Brisbane's Queen's Wharf casino still faces regulatory hurdles and has left employees with questions about their future at the embattled precinct. Star told investors on Tuesday morning it had finally signed a deal with its Hong Kong partners — including one which was once linked to organised crime figures. The deal would see Star give up assets, including its 50 per cent stake in the $3.6 billion Queen's Wharf casino complex, and the Treasury car park and hotel. In exchange, Star would receive a $53 million cash injection and stakes in Gold Coast hotels near its casino there. The deal still needs to pass regulatory checks and be approved by the Queensland government. Star has struggled financially amid regulatory inquiries and increasingly tough gaming regulations. In Brisbane, the Queen's Wharf precinct was originally planned for 2022, but years of lockdowns, flooding and a mould outbreak were among many issues which delayed its opening to August 2024. In March, in a bid to stave off insolvency, Star agreed to sell its 50 per cent stake in Queen's Wharf to its joint venture partners. That announcement marked the beginning of a turbulent five months, during which those same partners announced they would terminate the agreement. This week, that was walked back, with Star announcing a new deal had finally been signed. A Queensland government spokesperson said the deal between Star and its joint venture partners — Chow Tai Fook Enterprises (CTFE) and Far East Consortium — was not yet finalised. "The agreement … is subject to regulatory approvals, which will be considered following the receipt of formal submissions," they 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 Crisafulli government's priority, as always, remains on the workers at the Star," the spokesperson said. Griffith University Business School's Graeme Hughes said the deal would come as a relief to Star Entertainment if approved. "For Star, the Queen's Wharf sale is a strategic retreat from what has become a financial quagmire, with development costs blowing out by more than $1 billion," he said. Mr Hughes said the deal's success — and a lifeline for Star — hinges on getting the "green light" from regulators. "At the core of the issue is the transfer of a major casino licence to a new ownership structure," he said. "Regulators will scrutinise Chow Tai Fook and Far East to ensure they meet the stringent probity requirements necessary to control such a significant asset. "The stakes are high." The deal has left employees with questions about the future of their jobs in the precinct. United Workers Union casinos director Andrew Jones said the union had been supportive of the Star Brisbane through many of its hurdles. "The latest news once again increases uncertainty for members. We're seeking further information from the company about this announcement," he said. "Our consistent position is that any future structure of Star Brisbane should prioritise the job security of workers, which will give stability to the casino, the workers and their families."
Sky News AU
12-08-2025
- Sky News AU
Star Entertainment offloads Brisbane's Queen's Wharf precinct in $53m deal
Star Entertainment will finally offload its share of the Queen's Wharf precinct in Brisbane, ending months of speculation. In an announcement made just before 11am on Tuesday, Star said the new deal was almost identical to the one made in March. It will see the ASX-listed casino sell its 50 per cent stake in the Queen's Wharf precinct to Hong Kong Consortium Chow Tai Fook and Far East Consortium, who each already own 25 per cent of the building. Star will receive $53m in total through the deal, of which the first $45m was paid back in March and the remaining $8m to go through by November 30. The deal will ease the burden on Star, which was facing having to cough up its share of the $1.4bn in debt tied to the Queen's Wharf precinct. Star Entertainment will also take two-thirds of the Dorsett and Andaz hotels, which are currently being built on the Gold Coast by the Hong Kong consortium. Shares in Star jumped 29 per cent to $0.115 on Tuesday following the announcement. The statement said the deal had been approved by US-based owners Bally's Corp. 'The key aspects of the transaction are materially consistent with the Heads of Agreement announced to the ASX on (March 7),' the statement said. Star first struck a deal to sell the complex back in March, before it was revealed the deal was unlikely to be completed by July. Talks stalled and Star was forced to pay its business partners $10m as part of a termination agreement, and a further $31m before September 5. Tuesday's announcement said the transaction would be completed in two separate stages. Firstly, Star will completely exit from the Brisbane precinct. The Gold Coast assets are subject to separate conditions that are due to be completed by the second half of 2026. The deal will significantly improve the embattled Star Entertainment's financial position, with the latest financial results showing it will get more than $700m in liabilities and $350m in development costs off its books through the sale. Originally published as Star Entertainment offloads Brisbane's Queen's Wharf precinct in $53m deal
9 News
12-08-2025
- 9 News
Star Entertainment wins back lifeline casino deal to offload Queen's Wharf
Your web browser is no longer supported. To improve your experience update it here Star Entertainment has salvaged a lifeline deal to offload its stake in the Brisbane Queen's Wharf development to overseas partners, less than two weeks after a breakdown in talks . The embattled casino giant confirmed it had struck a binding agreement with its Hong Kong-based joint venture partners Chow Tai Fook Enterprises and Far East Consortium. The deal, which was almost identical to an earlier agreement in March, will result in Star selling its 50 per cent share of the Queen's Wharf development in exchange for $53 million. Generic Star Entertainment Group exterior. (AFR/Louie Douvis) Star will also transfer the partners the Brisbane Treasury Hotel and a CBD carpark, while securing full ownership of the Gold Coast precinct. The deal has been approved by US casino giant Bally's Corporation, which offered Star a $300 million rescue package to stave off administration. The Queen's Wharf transaction will take place on November 30. The Gold Coast and other Brisbane assets will be subject to a separate set of conditions expected to be met as early as July 1, 2026. Trading on the ASX has been temporarily paused in the meantime. The Star Casino at Darling Harbour, Sydney, Monday 19th of February 2024. (Dion Georgopoulos/AFR) Today's announcement comes after the three parties failed to reach an agreement on August 1, which left shares to plummet to 9 cents. Star was left liable for its $1.4 billion debt and was poised to pay back the partners $41 million. At the time, Star had tried to extend negotiations to August 6 but was rejected by the partners. Star runs casinos in Brisbane, the Gold Coast and Sydney and but has struggled to stay afloat in the past year The troubled operator is awaiting a court decision over alleged breaches of anti-money-laundering laws, and could owe hundreds of millions of dollars. business Brisbane Gold Coast queensland national Australia finance CONTACT US Auto news: Honda here to stay in Australia, announces growth plans.
