Star Entertainment has finalized a binding deal to withdraw as both operator and co-owner of Brisbane’s A$3.6bn Queen’s Wharf casino project, partnering with its Hong Kong-based consortium members to ease mounting financial pressures.
Under the agreement, Star will sell its 50% stake in the Queen’s Wharf consortium, along with the Treasury Brisbane hotel and car park, to its joint venture partners. In return, the ASX-listed operator will receive A$53m upfront (A$45m already paid), plus a potential A$225m in 2030, depending on the project’s performance.
The arrangement also grants Star ownership stakes in two Gold Coast hotels located next to its existing casino.
The deal requires multiple regulatory approvals, including state government consent for the ownership change. While no replacement operator for Queen’s Wharf has been named, Star will eventually hand over management to the incoming operator once confirmed.
Exiting the project removes significant financial obligations for Star, which had been expected to contribute a further A$212m in equity and refinance a A$1.4bn loan facility tied to the development this December. The move could notably improve Star’s cash flow at a time when its share price has fallen from above A$5 to around A$0.11, following sustained regulatory scrutiny, higher compliance costs, and stricter gaming laws.
The company has also faced reputational challenges linked to its partnerships, including unproven allegations that one partner had past connections to organised crime.
While the agreement offers immediate relief, its completion depends on regulatory sign-off, including vetting of the new operator. Analysts suggest the exit could be a strategic step toward stabilising Star’s finances and focusing on its Gold Coast operations, but the outcome will hinge on approval timelines and the future management structure of Queen’s Wharf.
