Star Entertainment is confronting a fresh financial crisis as its partners in the Brisbane Queen’s Wharf development have formally sought to cancel the sale of the casino operator’s 50 per cent interest in the integrated precinct. This blow lands just days after shareholders approved a $300 million rescue package that was expected to stabilise the business.
The termination notice, issued by Hong Kong-based Far East Consortium and Chow Tai Fook Enterprises, will take effect five business days from 30 June unless withdrawn, negating the $53 million agreement signed on 7 March for Star to exit the project. If Star fails to repay $10 million within 30 days, it risks surrendering its 33.3 per cent stake in Tower 1 at the Dorsett hotel to the partners.
Star says it remains open to negotiations with its joint‑venture partners to revive the deal. However, the collapse of the Queen’s Wharf sale removes a critical lifeline as the group depends heavily on asset disposals and external funding to navigate a deep liquidity crisis.
This capital crunch prompted shareholders last week to green‑light a $300 million rescue deal led by Bally’s Corporation and Star’s major shareholder, Bruce Mathieson. Under its terms, Bally’s is to inject approximately A$200 million and take about 38 per cent of convertible notes, with Mathieson contributing A$100 million in exchange for a further 23 per cent stake. That injection hinges on regulatory approvals and is contingent on preserving key assets, including Brisbane, Sydney and Gold Coast casinos.
Even with that deal in place, Star faces mounting legal and regulatory costs, notably potential penalties of up to A$400 million from Austrac for anti‑money laundering failures. The company continues under government scrutiny following multiple inquiries, venue suspensions, and significant losses reported earlier in the year.
The fallout from the deal breakdown quickly reverberated through Star’s share price: despite a 1.7 per cent uplift on 30 June, shares remain low, trading around A$0.147—far below pre‑crisis levels. Analysts warn that without immediate resolution of asset sale terms, Star may exhaust its capital before the Bally’s arrangement is fully executed.
The origins of this impasse date back to March when Star agreed to divest its Queen’s Wharf stake to the Hong Kong investors. The sale was expected to help Star avoid voluntary administration by unlocking liquidity while allowing it to assume control of its Gold Coast project. That plan now stands imperilled by unresolved commercial disagreements, with insiders characterising the termination as a negotiation tactic.
Star’s leadership team, facing relentless pressure, is reportedly pursuing simultaneous negotiations with Bally’s, Mathieson, its joint‑venture partners, and regulators. Chairman Anne Ward and CEO Steve McCann have emphasised the critical need to replenish liquidity to ensure continuity across Star’s operations. Yet, market observers point out that the unravelled Queen’s Wharf sale now places greater strain on the rescue package’s viability and on Star’s capacity to meet statutory obligations and debt repayments.
Bally’s stands to gain substantial control—expecting upwards of 56 per cent of Star following conversion of notes—marking its first venture outside the U.S.. For its part, the conglomerate remains optimistic after shareholder endorsement and is awaiting regulatory clearances in New South Wales and Queensland. But the loss of the Queen’s Wharf agreement introduces new uncertainty over whether the rescue will deliver sufficient capital in time.
In parallel, Star continues facing legal peril. Austrac is pushing ahead with its Federal Court action for alleged money‑laundering lapses, a case that could result in a record fine, potentially triggering licence revocations or forced asset sales. The group has already endured suspensions of its casino licences and regulatory probes targeting money laundering, governance failures and insolvency risks.
With competing deadlines looming—Queen’s Wharf termination, regulatory fine proceedings, debt repayments and conversion triggers—Star is walking a razor’s edge. Its ability to secure at least $300 million, alongside asset sale proceeds and regulatory cooperation, will determine whether it can avert collapse or head into voluntary administration.