Star Entertainment Group could go bankrupt within weeks with the future of its casinos in Sydney, Brisbane and the Gold Coast, along with the thousands of jobs they provide, in doubt.
The gambling giant warned that it has only $79 million in its bank accounts and is struggling with a decline in the number of players at its locations along with more than $100 million in fines imposed for license violations.
Analyst Angus Hewitt at investment research firm Morningstar told clients in a note that without a lifeline “the company would be lucky to make it to February 28.”
The group’s new crown jewel, a casino at the massive $3.6 billion Queen’s Wharf project in Brisbane, had its grand opening just a few months ago and could see its doors quickly close again in February, according to its largest shareholder.
Bar magnate Bruce Mathieson sounded the alarm this week that Star Casino could “go bankrupt or be bought out” within weeks as the company continues to burn through its cash reserves.
More than 3,000 staff in casinos, hotels and shopping areas help run the Brisbane venue alone and all could be out of work if it closes, prompting Premier David Crisafulli to assure those affected would be cared for.
However, if Star goes bankrupt, it would be the biggest corporate collapse since Virgin Australia bowed to Covid pressures in 2020.
The Brisbane headquarters and Star’s other Sydney and Gold Coast locations could be broken up and sold if money runs out before a solution is found.
Star Entertainment Group could run out of money in the next six weeks according to its largest shareholder (pictured: Star Casino in Brisbane, part of the $3.6 billion Queen’s Wharf).
Queensland Premier David Crisafulli has assured the 3,000 workers at the casino site that their jobs are safe, but has refused to offer the casino a bailout.
Group’s Sydney casino (pictured) could be sold as company burns cash
Queensland Treasurer David Janetzki has been in talks with the Star but warned the Queensland government was unlikely to bail out the operator.
Crisafulli did not speculate on what would happen to the casino, but offered reassurance to anyone whose jobs were at stake.
“I’m very confident, regardless of the ownership – that’s not to say one way or another – but regardless of what happens to the ownership of that entity, the focus should be on ensuring that there are jobs here,” he said.
‘We are not in the business of worrying about entrepreneurs sitting around a company. Star’s future is Star’s business.’
Crisafulli emphasized the importance of ensuring the area remains a commercial and recreational hub regardless of who operates the Star’s current building.
“We focus on the men and women who work there, not the casinos,” he said.
McCann also lobbied the NSW government for financial help in 2024, but Premier Chris Minns was quick to rule out that option.
The New South Wales premier flagged concerns that any donation would “mainly support the Star’s expansions in Queensland” rather than addressing any issues with its operations in his own state.
Star’s cash reserves fell 46 per cent between September and December, the casino giant told the Australian Securities Exchange this week.
Since September 30, the casino has lost $70 million and now only has $79 million left.
Several landers have warned that Star Entertainment could be in voluntary administration within months.
Star’s $3.6 billion Brisbane venue opened in August 2024 and has battled serious financial problems since then.
Star chief executive Steve McCann said his top priority is finding a “viable outcome” for the group’s near-term future.
Star chief executive Steve McCann told stakeholders his main concern was “trying to deliver a viable outcome for the business”.
“The focus is on saving jobs and providing a sustainable future for our 9,000 hardworking employees,” he said.
Before the Queensland state election in October, Labor had granted Star a casino license which the new LNP government has since contested.
Crisafulli said the casino failed to meet its previous commitments regarding tenant lodging, restaurants and commercial spaces.
“There were commitments that were given and not fulfilled, but let’s focus on the immediate priority and that is the workers who are there,” said the prime minister.
Star Entertainment had also proposed financial support to the previous Labor government, which also did not materialise.
Labor was not convinced that if Star collapsed they would ever get their money back and the casino refused to stop paying bonuses to its executives.
Hewitt told his Morningstar clients that he didn’t believe Star could recover before it ran out of cash.
“Star needs a more immediate solution and we believe it is unlikely to be able to get out of this situation,” he said.
Star Brisbane officially opened on August 29, 2024, two years late.
The $3.6 billion precinct was planned to open in stages, with the first phase of its reveal focusing on restaurants, bars and public spaces.
However, within days of opening it was already asking the then Labor government for tax relief which Prime Minister Steven Miles had welcomed before the election.
“The worst case scenario would be that they would have to close their doors shortly after opening them,” Miles said in September.
Star has casinos in Brisbane, Gold Coast and Sydney, with its Gold Coast location being the largest casino in Queensland.