Star Entertainment’s Queensland Casino Under Threat Over Shortcomings
- Star Entertainment is currently developing a casino resort in Queensland
- The $3.6 billion casino resort is under threat over Star’s shortcomings
- Star Entertainment could be stripped of holding a Queensland casino license
Star Entertainment, the second biggest casino operator in Australia is in the middle of constructing a mega casino resort in the state of Queensland. Star teamed up with top property developers in Hong Kong, Chow Tai Fook Enterprises and the Far East Consortium to develop a $3.6 billion Queen’s Wharf casino development in Brisbane, Queensland.
The casino development project is an important project for Star Entertainment as well as for the city of Brisbane as it occupies nearly 10 percent of the central business district (CBD). The development for this project started in 2015 but it has been hit with a number of setbacks including the COVID-19 pandemic which slowed down things.
This casino project now faces its biggest threat as the Queensland gaming regulator has now launched an investigation into Star Entertainment and its suitability to hold a gaming license in Queensland. The inquiry was launched by the Queensland Office of Liquor and Gaming Regulation after Star’s failures were highlighted by the New South Wales (NSW) gaming regulator.
The NSW gaming regulator pulled up Star Entertainment for multiple compliance breaches which includes fraud, money laundering, foreign interference and organized crime. Star Entertainment might get stripped of its casino license in NSW for its shortcomings and if this happens, then Queensland is most likely to make a similar decision.
Star Entertainment Will Cooperate With Queensland Investigation
Multiple agencies in Queensland are currently investigating Star Entertainment and their suitability to hold a license in the state.
Shannon Fentiman, attorney general for Queensland has also called for a probe into Star Entertainment and its activities in the state.
A representative for Star has confirmed that the company will offer full cooperation to all regulatory agencies in Queensland during the investigation. If Star Entertainment is stripped of its Queensland casino license, it will be a difficult proposition to run a successful resort without essential revenues flowing in from the casino operation.
Given Star’s partnership with Hong Kong based partners, the casino strategy earlier would have been to attract VIP gamblers from Asia. If Star Entertainment gets a clean sheet from the regulators, the operator will have to abandon its strategy to attract VIP gamblers from Asia and focus more on the local market which may not be that lucrative a strategy for the multi-billion casino resort.