The future of Brisbane’s Queen’s Wharf casino could soon be in the hands of Crown Resorts, as Chow Tai Fook Enterprises (CTFE) and Far East Consortium (FEC) explore a change in operations amid their ongoing acquisition of Star Entertainment’s 50% stake in the project. Discussions with Crown mark a potential shift in casino control that would bring Blackstone-backed Crown into Queensland for the first time.
CTFE and FEC, which each hold a 25% stake in the Queen’s Wharf development, are finalizing the buyout of Star’s share. A short-form agreement was reached in March, providing Star with a vital AU$53 million funding injection and temporary operational rights over the Brisbane casino until at least March 31. However, tensions have grown between the parties over whether Star should remain in charge long-term.
Crown touted as preferred operator by regulators:
While several potential replacements are in discussions—including SkyCity Entertainment and Delaware North—sources familiar with the negotiations suggest Crown is the favored contender. “The Queensland regulator would prefer an operator like Crown that can clearly meet probity and suitability requirements,” one source noted.
Crown, which was acquired by Blackstone in 2022, already holds licenses in Melbourne, Sydney, and Perth, and has addressed previous regulatory concerns around anti-money laundering and governance. Its proven ability to meet strict compliance standards is said to give it an edge in Queensland’s regulatory environment.
Interestingly, Crown was among the original bidders for the Queen’s Wharf license a decade ago, before the contract ultimately went to Star. The current interest represents a possible return to a project it was once in the running to lead.
Deal faces imminent deadline and high stakes:
Time is running short for Star to conclude a long-form sale agreement with its Hong Kong partners before the July 31 deadline. Failure to do so would trigger financial penalties, including the loss of AU$36.5 million and the forfeiture of a third payment tranche and key real estate assets such as a 33.3% share in Tower 1.
Queen’s Wharf was once hailed as the crown jewel of Star’s portfolio, featuring a 2500-machine casino (1,500 active at opening), luxury hotel towers, and a waterfront precinct. However, escalating construction costs—now AU$1 billion over budget—and mounting debts exceeding AU$1.4 billion have turned it into a financial strain for the company.
Star’s broader financial troubles have prompted intervention from Bally’s Corporation, which has pledged a AU$300 million lifeline pending regulatory approval. Bally’s chairman Soo Kim has publicly expressed interest in taking over casino operations himself. “We believe no one will be in a better position than ourselves to run these casinos,” Kim reportedly told The Australian Financial Review. “We cannot blame the DBC partners for casting about looking for solutions.”
The possible handover of operations has also reignited scrutiny around CTFE’s and FEC’s ability to hold a casino license in Queensland. Previous concerns have been raised regarding their alleged associations with junket-linked individuals, although nothing formal has blocked their participation to date.
Meanwhile, the deal’s outcome could significantly impact Star’s survival. In addition to the looming sale deadline, the company faces a potential AU$400 million fine from regulators over past misconduct—a penalty that could push it toward insolvency.
Despite this, Star remains involved in negotiations with its partners and other stakeholders, with all sides aiming to reach a binding agreement by the end of the month. Crown’s involvement, should it be formalized, could reshape Queensland’s casino landscape and mark a turning point for the struggling Queen’s Wharf project.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
