Queensland Premier David Crisafulli has voiced deep concerns over Star Entertainment’s failure to honor its commitments in the state, particularly regarding the Queen’s Wharf development in Brisbane. As the company grapples with significant financial difficulties, Crisafulli is considering whether any form of government support, such as tax relief, could keep Star’s operations afloat. However, he has made it clear that any future negotiations will be centered on ensuring job security for workers and holding the company accountable for its past failures.

Star Entertainment’s struggles and government concerns:

Star Entertainment, which operates casinos in Sydney, the Gold Coast, and Brisbane, recently issued a warning to shareholders, stating that its financial future is uncertain without external assistance. The company is facing significant liquidity issues, with just AU$78 million left in available cash as of December 31, 2024. Despite efforts to negotiate with lenders, Star’s financial position remains precarious, leading to discussions about its ability to continue operating. The company has requested relief from gaming taxes, a plea that has been met with mixed responses from state governments.

While New South Wales Premier Chris Minns has ruled out providing assistance, Queensland’s Premier Crisafulli has indicated he is open to discussions, although he has emphasized that his primary concern is the impact on workers rather than the company’s financial viability. “I’m not on their board. I have no interest in whether or not they are a viable entity,” Crisafulli said, as reported by Brisbane Times. “My concern is the people who work for them.” He reiterated that his focus would be on keeping the Queen’s Wharf precinct open and ensuring jobs are preserved, regardless of whether Star remains the owner or if a new operator takes over.

The Queen’s Wharf project, a joint venture between Star, Hong Kong-based Chow Tai Fook Enterprises, and Far East Consortium, has faced multiple setbacks since its inception. As part of the agreement, the consortium was required to pay $272 million to the Queensland government before the casino could open, and contribute at least $880 million in gaming taxes over the first decade of operation. While the consortium met some of its financial obligations, it has not fully delivered on other promises, including job creation targets. The development was expected to employ 8,000 workers once fully operational, but only about 6,000 are currently employed in the precinct. Additionally, the project is still missing several key retail and hospitality outlets and hotels.

Crisafulli has pointed out that some of the promised jobs were never created, attributing part of the blame to industrial action by the CFMEU, which made the market more challenging for Star. He has hinted that the company failed to meet other critical terms of the agreement, but his office has remained tight-lipped about the specifics. “There are job opportunities that weren’t created because deals by the company weren’t honoured,” he said, emphasizing that his government’s current priority is safeguarding employment.

Potential for asset sale or rebranding:

Crisafulli has not ruled out the possibility of Star selling its stake in the Queen’s Wharf development, which could lead to the precinct being rebranded under a different name. He suggested that while the company’s ownership may change, the key issue remains ensuring the continuation of operations and job security for workers. “If whoever owns it is able to then invest in the developments that were promised, and were always part of the deal, that will create more jobs,” he explained.

According to News.com.au, this sentiment reflects a broader concern within the Queensland government, which is focused on the long-term welfare of the workforce, regardless of who operates the casino and associated developments. Crisafulli has made it clear that he will not consider tax relief or any other form of government support unless it directly benefits workers and the community. “My focus is only on the workers in continuing that operation,” he added, underscoring that the survival of the Queen’s Wharf project, with all its associated job opportunities, is paramount.

The Premier’s comments have sparked political debate, with the Queensland Opposition warning against any secret deals to support Star Entertainment with taxpayer funds. Opposition Leader Steven Miles has voiced strong opposition to any government-backed bailout, arguing that such support would be unjustifiable given the company’s poor management. “If David Crisafulli intends to use taxpayer funds to prop up a casino company that was clearly poorly managed over many years, then he will need to very clearly justify that to Queenslanders,” Miles said. He added that the state’s resources would be better spent on essential services like healthcare, education, and housing.

Despite this, Crisafulli has remained firm in his stance, prioritizing the preservation of jobs over corporate concerns. “I just want that place to be open, and I want as many people as possible to have a job,” he said. His comments highlight the government’s commitment to ensuring that the Queen’s Wharf project fulfills its potential as a major economic driver for Queensland, even if it means a shift in ownership or operational structure.