Star Announces Queen’s Wharf Exit Deal Has Collapsed, Talks Still Underway

One of Australia’s most significant casino transactions in recent years is on the verge of collapse, as Star Entertainment confirmed on Monday that its plan to exit the multibillion-dollar Queen’s Wharf development in Brisbane is set to terminate as early as 7 July.

Back in March, Star revealed its intention to sell its 50% stake in the Queen’s Wharf joint venture to its partners—Far East Consortium and Chow Tai Fook Enterprises—for AU$53 million. The move was driven by Star’s mounting financial strain, despite the long-term upside of the venture, which only opened in August last year.

The sale was designed to free Star from substantial financial obligations tied to the project, estimated in the hundreds of millions in equity and debt contributions. In exchange, Star would also regain full ownership of the Star Gold Coast by reacquiring the shares held by its partners. The restructuring seemed like a win-win: divesting from one casino while consolidating another.

However, the deal has now unraveled.

Missed Deadline, Deal in Doubt

Although the initial agreement set a 30 April deadline for finalizing documentation, that milestone quietly passed without public notice—only appearing in a company filing from late May. According to Star, that delay opened the door for any party to walk away. On Monday, the company confirmed that its partners had taken that option.

In an ASX filing, Star said:

“This morning, The Star received from the Joint Venture Partners a notice to terminate the HoA which will become effective five business days from today, unless withdrawn earlier (i.e. any termination of the HoA would take effect on Monday 7 July 2025).”

Hope Still Alive for Star

Despite the setback, Star signaled that it’s not ready to abandon negotiations. The company emphasized its continued willingness to engage with its partners in hopes of reviving the transaction—still eager to offload the Queen’s Wharf financial burden as it grapples with severe liquidity issues.

However, Far East Consortium’s tone was more definitive. In its own statement, FEC made no mention of ongoing discussions, instead outlining next steps:

• Star must repay AU$10 million to its partners (split equally between FEC and Chow Tai Fook) within 30 days of termination.

• The partners are no longer required to pay a previously agreed AU$8 million to Star.

• If Star fails to repay, it risks losing its stake in one of the Star Gold Coast hotel towers, which was pledged as collateral.

As of publication, Chow Tai Fook had not publicly commented.

Timing Is Everything

The timing of the failed Queen’s Wharf exit has added intrigue to Star’s larger corporate saga. The exit deal was announced on 7 March—just two days before US casino operator Bally’s Corp entered the picture with a buyout offer. Bally’s opposed the Queen’s Wharf exit, preferring to keep all of Star’s assets under one umbrella.

Nonetheless, Bally’s and Investment Holdings moved ahead with a combined AU$300 million acquisition in early April. After gaining majority ownership, Bally’s Chairman Soo Kim told Inside Asian Gaming that the Queen’s Wharf deal still seemed poised to close—despite his prior objections.

On 25 June, Star shareholders overwhelmingly approved the Bally’s takeover, seemingly clearing the way for a fresh start. Given that context, it’s plausible Bally’s would now favor re-engaging with the Queen’s Wharf project, as part of a broader strategy to stabilize Star’s future.

“We believe these assets sort of work together,” Kim told IAG in an interview that was published just hours before news of the collapsed deal broke.
“The problems that are faced by one are sort of faced by all three [of Star’s casinos]… We have a responsibility to manage Brisbane out of the box one way or another.”

Legal Storm Brewing: AUSTRAC on the Horizon

Shadowing this financial drama is a far graver threat—AUSTRAC, Australia’s federal financial crimes regulator. Star has been under investigation for years over alleged anti-money laundering (AML) and know-your-customer (KYC) violations. State inquiries have already exposed glaring compliance failures, and Star’s Sydney and Gold Coast licenses remain suspended under state-appointed management.

On 30 September, a third suitability review of the Sydney casino is expected to begin.

Meanwhile, Star has recently entered legal proceedings with AUSTRAC. Prosecutors laid out damning evidence involving the operator’s ties to notorious junkets, including the now-defunct Suncity Group, whose leader Alvin Chau is serving prison time in Macau for illegal gambling operations.

AUSTRAC is reportedly pursuing a penalty of AU$400 million—on par with the AU$450 million fine imposed on Crown Resorts last year for similar breaches. Star, however, has warned that such a fine could be fatal.

“We contend for a $100 million fine,” Star’s attorney Steven Finch SC told regulators.
“That amount… is all the money that we have and reasonably anticipate being able to borrow, hoping but not certain that we will be able to survive that.”

What’s Next for Star Entertainment?

The unraveling of the Queen’s Wharf transaction is more than a failed business deal—it’s a potential turning point. With massive regulatory fines looming, suspended licenses, and uncertain investor confidence, Star’s path forward is filled with uncertainty.

Still, the company appears determined to navigate through it—whether by restarting negotiations with its former partners or finding a new financial strategy under Bally’s stewardship.

One thing is clear: the next few months will be crucial in determining whether Star can survive the storm—or become the next cautionary tale of Australia’s casino industry.