As a business, The Star is ahead of many in our industry in terms of diversity and inclusion, but there’s still a lot to do. It was an absolute joy to see the collaboration from all the stakeholders and how their team welcomed them with open arms. My involvement was driven by a deep-seated commitment to be a beacon of support and positivity for those in need. I have been part of the company for over 21 years, serving in various capacities. It substantiated the ABC's revelation that Chow Tai Fook had a "concealed interest with a person not of good repute, Mr Alvin Chau, through an ongoing interest in the Vietnam project". "Junket business normally would have complications in the background… this could involve illegal activities, association with triads or even being triad members themselves," he said. He blamed a "misunderstanding" with Chow Tai Fook management for having a stake in the casino with Chau in the first place.
The cashcards — in line with a crackdown from Beijing on overseas gambling — were not meant to fund casino splurges. A guest with a China Union Pay cashcard made an unusually large withdrawal via EFTPOS at the casino hotel. At Star's old Brisbane casino, a gambler from Asia with a million dollars in cash was a rare sight, a former insider says.
Queensland regulators believed Hong Kong tycoon Cheng Yu Tung, pictured here in 2011, was too elderly to have any influence on his family's involvement in the Brisbane casino. He was barred from any involvement in the Brisbane venture — and died the following year. Had that happened, Suncity would "likely have had a significant involvement in the introduction of international VIP players" to Brisbane, according to the OLGR. The business partnership which saved Donald Trump's career was forged in a failed Australian casino bid. Chow Tai Fook Enterprises, controlled by Hong Kong's Cheng family, is a jewellery and property empire with "vast financial resources", according to Queensland's Office of Liquor and Gaming Regulation OLGR.
The deal would also relieve Star of financial commitments to invest more money into the Brisbane business, and all debts related to the project. Just a few days later, Star reached a deal with US casino giant Bally's for at least $250 million in exchange for a controlling stake in the company. "A buyer would have to be comfortable with a company in Star's circumstances to be a joint landlord and take the risk of default under the agreement." In March, desperate for money to stave off insolvency, Star agreed to sell its 50 per cent stake in Queen's Wharf to its joint venture partners Chow Tai Fook Enterprises and Far East Consortium for $53 million. In January this year, the company told the ASX it had just $79 million left in available cash and had burned through $70 million since the end of September. By the time its new Brisbane casino opened on August 29, 2024, that had plummeted to 57 cents a share, making it difficult for the company to raise funds and keep its new business operating.
But like at Hoiana, where Chow Tai Fook took a controlling stake with Chau out of the picture, the real money spinner in Brisbane could be the development around the casino. Cheng said he killed the original deal to buy Suncity because "I don't like the junket business or Mr Chau". One of the men, a billion-dollar Chow Tai Fook shareholder and co-founder of its jewellery business, was loaned the money on a "handshake" and charged no interest. Chow Tai Fook denied having any "agreements, directorships or business relationships" with the Vietnam casino. A source close to the project gave the ABC a detailed account of Chow Tai Fook's involvement. "The Queensland government would then conduct a rigorous process to license a new, financially sound, and compliant operator for the casino."
The Queensland government has indicated it wants a casino to continue operating at Queen's Wharf but won't offer financial support or concessions to Star. "If a massive AUSTRAC fine, or the ongoing Queen's Wharf financial burden, renders Star insolvent, Bally's may pull out, leaving Star almost certainly facing administration." Reaching a deal, Mr Hughes said, is of "existential" importance to Star. On Monday, the company notified the ASX that the deadline for termination has now been extended to July 31st. But just when things appeared to be improving for Star, their joint venture partners suddenly announced they were terminating the agreement to buy Queen's Wharf, effective July 7.
"Delays and ongoing costs during construction meant it was sucking cash, not generating it, at a time when Star was already struggling with regulatory fallout and falling revenue." In all, the casino, four hotels, retail venues and restaurant spaces would cost an estimated $3.6 billion — Queensland's biggest ever infrastructure project. Brisbane's resort and casino precinct Queen's Wharf opened in August 2024 but faced financial woes before and after. Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.
"Queen's Wharf became a drain because, as a 50 per cent joint venture, Star was on the hook for huge capital contributions and a big chunk of the project's $1.4 billion debt," Graeme Hughes from Griffith University's business school said. The deadline to reach a deal on the sale of Star Entertainment's stake in Brisbane's Queen's Wharf precinct has been extended, as the casino operator desperately fights to avoid administration. Star Entertainment’s Hong Kong investors have offered to take over the embattled casino group’s new Queen’s Wharf complex in Brisbane under a plan that would significantly ease the company’s financial woes.