A casino giant may be wishing on a shooting star if it expects to be bailed out of financial trouble, after a state government shut down talk of a lifeline.
Shares in Star Entertainment plunged by more than 19 percent to an all-time low of 10.5 cents on Jan. 10, building on the 20 percent decline suffered on Jan. 9.
The embattled casino operator opened Brisbane’s $3.6 billion (US$2.2 billion) Queens Wharf hub in the city’s CBD late last year.
It is set to be one of the centrepiece locations driving tourism for the Brisbane 2032 Olympics.
The former state Labor government had ruled out a lifeline for the company’s Brisbane casino in the form of a tax deferral for Star after its financial woes spelt trouble for the new Queens Wharf precinct.
Now with the shares of the parent company falling and concerns around the future of the infant restaurant and bar hub in Brisbane, Liberal National Premier (LNP) David Crisafulli has vowed to save jobs but not the casino.
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“I want Queenslanders to know that we’re not in the business of being concerned about the corporate suits who sit around a company,” he told reporters on Jan. 10.
“Our focus is on the people who work there.”
His decision comes after the casino operator revealed it had $79 million (US$48.9 million) in available cash at year-end, after burning through $107 million (US$66.2 million) in the final three months of 2024.
It has a potential lifeline in the form of a $100 million (US$61.9 million) debt facility but hasn’t been able to access that capital.
Without obtaining the lifeline, Star could be at risk of entering administration.
Crisafulli will not be entertaining any tax deferrals for the company but wants to maintain the hundreds of jobs at the precinct.
“If you’re asking me whether or not I think it is a good use of taxpayer money to prop up individual companies, I would suggest to you the focus should be on individual workers,” he said.
If Star enters administration, it’s unclear what the future of the Queens Wharf precinct will be.
“Regardless of what happens with the ownership, our focus has to be on making sure there’s jobs,” Crisafulli said.
Pressures on Star have increased since the fallout of a money-laundering scandal in 2021, steering high rollers away from the casino’s tables.
The former Queensland Labor government fined Star in Brisbane and the Gold Coast $100 million in 2022 after a state review found the casinos had “major failings” in anti-money laundering and responsible-gaming efforts.
Two probes of the company’s NSW casino site also found the operator to be unfit to hold a licence after concerns it has not adequately committed to cultural reform following the money-laundering findings.
The former Queensland government had initially decided to slap a 90-day ban on both the state’s casinos in December 2023 but delayed the suspension until the end of 2024.
The LNP government then further delayed the ban until March 2025 to have time to assess whether the casino has overhauled the culture, introduced safer gambling and stamped out financial crime.
Star has more than 9000 employees at its casinos in Sydney, Brisbane, and the Gold Coast.
