Star Entertainment Group’s future in limbo as Queen’s Wharf opens

Star Entertainment Group, once the glittering symbol of Australia’s high-rolling casino scene, is now teetering on the brink as it grapples with a trading suspension, regulatory scrutiny, and an uncertain future. The timing couldn’t be worse: the Australian Securities Exchange (ASX) suspended Star’s trading this week, just as the group’s flagship project—the $3.8 billion Queen’s Wharf precinct in Brisbane—opened its doors, with Star as the chief partner.

The group finds itself in a precarious position as the ASX suspended its trading on September 2, 2024. The suspension occurred after the casino operator failed to submit its annual financial report by the August 31 deadline, marking the latest blow in a series of setbacks for the embattled company.

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This suspension follows the release of the Bell 2 report by the NSW Independent Casino Commission (NICC), which delivered a damning assessment of Star’s management and operations.

Adding to Star’s woes, the company is preparing for a massive $1.4 billion write-down of its casino assets, driven by a combination of tighter gaming regulations, a slowing economy, and the financial burden of its newly opened Brisbane casino in the $3.8 billion Queen’s Wharf precinct.

The timing of Brisbane’s Queen’s Wharf opening could not have been more unfortunate. Intended to showcase the city’s bold vision, the grand opening on August 29 was overshadowed by the turmoil engulfing Star, the precinct’s chief partner.

Despite these challenges, Queen’s Wharf officially welcomed its first visitors, marking the beginning of a new era for Brisbane’s tourism and entertainment sector.

ABC News reported that Star Brisbane Chief Executive Daniel Finch acknowledged the challenges, stating that the company is making significant progress in meeting the state government’s standards for anti-money laundering and responsible gambling practices.

At the Queen’s Wharf launch, Finch said, “We have a heightened focus on all of our anti-money laundering policies, procedures, internal control manuals, and measures, as well as counter-terrorism financing.

“We are also concentrating on safer gambling and harm minimisation. We now have an extensive team and protocols in place, and we are well on our way to demonstrating suitability.”

The Queen’s Wharf precinct is a joint venture led by Star Entertainment Group along with its Hong Kong-based partners Chow Tai Fook Enterprises and Far East Consortium. The launch also marked the closure of the gaming venue at Treasury Casino, though the Treasury Brisbane hotel remains operational.

The first phase of Queen’s Wharf has added 340 hotel rooms to Brisbane’s accommodation options, with guests checking into The Star Grand hotel on the morning of the opening. Additional hotels, including Dorsett and Rosewood, are expected to open by the end of 2026. The Sky Deck, offering expansive views of the Brisbane River, CBD, and South Brisbane, opened to the public at 5 pm the same day, alongside the first of three restaurants on the deck level.

Queensland’s government, eager to see Queen’s Wharf succeed, granted Star a new casino licence for the precinct, but not without conditions. The NICC and Queensland authorities have appointed Nicholas Weeks as a special manager to oversee Star’s operations, ensuring compliance with regulatory standards and maintaining strict oversight.

The stakes for Brisbane are incredibly high. Queen’s Wharf was intended to be a symbol of the city’s evolution and a beacon of progress. Now, the question is whether Star can deliver on this grand vision or if the project will be marred by the company’s ongoing troubles.

Newly appointed CEO Steve McCann, who previously played a key role in resurrecting Crown Resorts, faces the daunting task of steering Star through its current crisis. McCann is working against the clock to secure a rescue package that would stabilise the company’s finances.

However, as reported by ABC News, securing such a deal is proving difficult. The NSW and Queensland governments are at odds over whether to provide Star with tax relief, a critical component of the proposed rescue plan. Queensland Premier Steven Miles has indicated that his government is open to discussions, while the NSW government, led by Premier Chris Minns, has expressed reluctance to offer further tax concessions, especially after recent backtracking on tax changes and the introduction of cashless gaming.