Star’s Queen’s Wharf Exit Falters as Online Gambling Pulls Ahead
Star Entertainment’s planned exit from the Queen’s Wharf development in Brisbane is now hanging by a thread. The deal, first announced in March, looked like a lifeline for the struggling casino operator. But with missed deadlines and a termination notice issued by its former partners, the transaction might formally end on 7 July. While Star says it’s still open to talks, time is running out. The buyout was meant to reduce financial pressure. Instead, the company finds itself in deeper trouble, facing legal risks, suspended licenses, and a rapidly changing gambling scene.
The original agreement saw Star selling its 50 percent stake in the Queen’s Wharf project to Far East Consortium and Chow Tai Fook Enterprises for AU$53 million. The consortium also gave up its interests in the Star Gold Coast casino, returning full control of that asset to Star. The trade was meant to simplify ownership and provide Star with quick cash. That cash was needed, too, with the company losing ground across multiple fronts. This is especially true as fewer people are visiting casinos in person. With tighter finances and public scrutiny rising, the deal was as much about survival as strategy.
The broader context matters here. Star’s physical venues aren’t drawing the same crowds they used to. With questions swirling around the company’s suitability to operate casinos in New South Wales and Queensland, confidence is thin. Many Australians who once played at venues like Star Sydney or Star Gold Coast are now placing bets online. Online casinos have seen a sharp uptick in usage, especially among players turning to online pokies for entertainment. These games, often regulated and audited, give players a familiar experience without needing to leave home. This is an appealing option when trust in traditional venues is on the decline.
Under the terms of the agreement, all three partners were meant to complete documentation by 30 April. That didn’t happen. The missed deadline gave any party the right to back out. And earlier this week, Far East Consortium and Chow Tai Fook took that opportunity. They sent a formal notice to terminate the agreement, which became effective five business days from issuance.
Far East Consortium appears ready to move on. In a statement, it laid out the next steps without suggesting any further talks. Star is now expected to repay AU$10 million to the two partners and will lose an AU$8 million payment it was set to receive. If Star can’t make that payment in the next 30 days, it risks giving up part of its Star Gold Coast hotel tower as collateral.
Complicating matters further is Star’s recent AU$300 million buyout deal with Bally’s Corporation and Investment Holdings. Shareholders voted in favor of the takeover in late June, just days before the Queen’s Wharf announcement took a turn. Bally’s had opposed the Brisbane exit when it was first proposed, preferring to keep all assets under one umbrella. Now, with the deal potentially falling apart, that outcome may happen by default.
For now, Star is trying to hold onto what stability it can. It remains in talks, owes millions, and has regulators breathing down its neck. Whether the company can come out the other side depends on more than just this one deal. Yet, the failure of the Queen’s Wharf exit may be the clearest sign yet that its old model no longer works.