Posted on: December 10, 2024, 11:59h.
Last updated on: December 10, 2024, 11:59h.
The Star Gold Coast secured a rare win last week when the Queensland government announced it would delay the suspension of the Broadbeach Island resort’s gaming license.
The Star Gold Coast, one of two properties in Queensland owned and run by embattled Australian casino firm Star Entertainment, was due to have its gaming license suspended for 90 days effective Dec. 20, 2024. In a release, the Queensland government said it will defer the suspension until next year or possibly lift the temporary interruption of play altogether. A decision will be made by March 31, 2025.
The [Queensland Premier David] Crisafulli Government has the highest standards when it comes to the integrity of casino operations and, unlike our predecessors, we are committed to transparency and restoring the confidence of Queenslanders in the regulatory process,” said the Honorable Deb Frecklington, the Queensland attorney general and minister for justice and integrity.
Frecklington explained that the postponement will provide more time for government investigators to probe how The Star Gold Coast is taking remedial steps in “fixing a litany of problems.”
March Deadline
In August, Star Entertainment was again found unsuitable to possess a gaming license in New South Wales (NSW). A government inquiry there determined that The Star Sydney, its most critical asset in the company’s three-casino portfolio, was unfit to run casino games.
The inquiry concluded that Star Sydney looked the other way when it came to suspected money laundering and did little to keep criminal syndicates off of its gaming floor. That prompted officials in Queensland to explore whether the company engaged in similar business practices at The Star Gold Coast. Star also owns and operates the newly opened Star Brisbane.
Queensland investigators found evidence suggesting regulatory shortcomings at the Gold Coast property and motioned to suspend the resort’s gaming license for three months.
Frecklington explained the license deferment should not create an assumption that a further deferral will be granted or a suspension won’t occur. However, the development follows a similar path in NSW where the inquiry initially proposed a suspension of The Star’s gaming license but was later reversed in favor of the company paying an A$15 million (US$9.56 million) fine.
The NSW Independent Casino Commission previously fined The Star Sydney A$100 million after the 2022 inquiry first found the casino noncompliant in safeguarding against money laundering and criminal syndicates.
Revenue by Property
Star Entertainment remains on life alert as business continues to dwindle at its three properties because of changing business environments mandated by the government probes. Most high rollers from China have fled to more attractive gaming markets and the implementation of regulatory upgrades has caused overhead to skyrocket.
Company earnings before interest, taxes, depreciation, and amortization (EBITDA) crashed from A$237.5 million in the 2022 fiscal year to A$174.7 million in FY2024, a decline of more than 26%. Each share lost almost A67 cents.
In FY24, Sydney generated the most revenue at A$877.5 million. But because of high operating expenses — A$578.5 million — the resort’s EBITDA came in at just A$51.8 million.
Gold Coast generated revenue of $456.1 million and delivered EBITDA of A$71.3 million after A$307.3 million in overhead. Brisbane posted EBITDA of A$51.6 million on A$344.2 million in revenue and A$205.2 million in expenses.
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