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ABC News
5 days ago
- Business
- 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."
ABC News
12-08-2025
- Business
- ABC News
Star Entertainment Group signs on-again, off-again takeover deal with Hong Kong partners
Besieged gaming giant Star Entertainment has agreed to give up both running and part-owning the $3.6 billion Queen's Wharf casino in Brisbane, cutting a deal to avoid financial calamity. Star told investors this morning it had finally signed an on-again, off-again deal with its controversial Hong Kong partners, one of which was once linked to organised crime figures. That deal is still subject to clearing hurdles including regulatory checks. But, if successful, ASX-listed Star will take stakes in Gold Coast hotels near its casino there. It will also get to pocket $53 million in the deal. Star, in turn, would give up assets including its 50 per cent stake in the consortium behind Queen's Wharf, as well as the Treasury car park and hotel. The move will alleviate a heavy cash flow and debt burden on Star; the consortium had required future equity payments of $212 million and a loan facility of $1.4 billion needed to be refinanced in December this year. One concern during negotiations had been whether Star would get to retain rights and fees to manage the Queen's Wharf. The deal announced on Tuesday specifies that a replacement operator — yet to be named — will come in at some stage. In giving up the operator fee, Star receives compensation of $5 million a month until June next year, scaling up to $7 million monthly by June 2028. Star could even receive a bonus payment of up to $225 million in 2030 based partly on the performance of the consortium. The deal depends on regulatory approvals. A change of ownership would require state approval, but the government has not yet indicated whether that will happen. The Hong Kong consortium partners are Chow Tai Fook (CTF) Enterprises and Far East Consortium. In 2022, the ABC established criminal associations involving CTF, which triggered a government inquiry. Finally released earlier this year, the government report found CTF had falsely and repeatedly claimed to have cut business ties with a criminal syndicate boss. The hidden ties were with junket boss Alvin Chau through a Vietnam casino venture — Chau is now serving 18 years in prison over a billion dollar fraud by his VIP gambling outfit, or 'junket', Suncity. The-then Labor government found CTF was still suitable to hold a casino licence, arguing its lack of "candour and fulsomeness" with the regulator was due to "differences in cultural and organisational expectations". Anti-gaming activists have previously said the state should rule out a takeover due to the crime links. Attorney-General Deb Frecklington's office was contacted for comment on Tuesday. Star's financial performance had been crumbling after being smashed by regulatory inquiries and increasingly tough gaming regulations. Its shares were trading higher than $4 each in 2019, but those are now wallowing around 12 cents.
