Star Entertainment’s Financial Woes Deepen despite Queens Wharf Opening

The troubles for The Star Entertainment, Australia’s leading casino operator, continue after its recent suspension from trading on the ASX, the country’s primary stock exchange. The unexpected move came after the operator missed the deadline to submit a financial report last week.

The announcement came just after the company opened its new venue in Queensland, Queens Wharf Brisbane. The opening of the new casino followed the closure of its Treasury Brisbane Casino property.

While Queens Wharf represents an investment of a staggering AU$3.6 billion, The Star is reportedly having a difficult time keeping the venue operational. As suggested by the Australian Financial Review (AFR), the company had a busy weekend and organized meetings with regulators and other industry stakeholders in order to raise funds for its Brisbane property.

Despite The Star’s efforts, it reportedly wasn’t able to secure the required cash injection which reaffirms the threat to its Brisbane property. According to the AFR’s report, there are “genuine fears about the company’s ability to stay afloat,” unless it is able to secure approximately AU$300 million. Such a cash injection is expected to help The Star’s Queens Wharf property continue to operate.

Closing the Doors of Queens Wharf Brisbane Is the Worst Case Scenario

One of the potential options the company is facing to secure the required funding is through tax relief from the Queensland government. Previously, the government in New South Wales (NSW) rejected such a possibility, considering The Star’s expansion in Queensland.

The talks between the operator and the Queensland government continue. In an interview for The Guardian on Wednesday, the premier, Steven Miles, spoke about the importance of keeping the Queens Wharf property open. He deemed The Star’s venue a “fantastic asset” to the city and a business that generates jobs and helps bring more visitors.

Miles warned: “The worst case scenario would be that they have to close their doors not long after opening them.” He spoke about the importance of The Star’s venue for Brisbane 2032 and the future of the city over the next decade.

Miles explained that it was disappointing that the NSW government rejected the possibility of providing The Star with a tax break. He highlighted that the operator is a major employer in Sydney and added that the Queensland government would like to keep the company’s venue in Brisbane open.

The latest hurdle comes at a time when The Star continues to face regulatory scrutiny. A new inquiry into its operations found it unsuitable to hold a license for its casino in Sydney only last week. The second probe followed a damning report by Adam Bell which uncovered serious issues, including regulatory breaches and cultural failures, among others.