The Star Entertainment Group will have to repay about A$41 million after the planned sale of its interest in the Destination Brisbane Consortium (DBC) fell through, according to a report in the trade publication Gambling Industry News. The publication also gave a converted figure of $26.6 million.

How the deal unravelled

In March 2025, The Star signed a binding head of agreement (HoA) to sell its 50% ownership interest in DBC, plus its one-third equity interest in Destination Gold Coast Consortium (DGCC), to its joint venture partners, Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium International.

The sale was due to complete on 30 June. According to the report, The Star could not meet that deadline, and the two partners submitted notice to terminate the arrangement. A few days later, The Star announced that the parties had agreed a revised termination date of 31 July.

That date passed last Thursday without the transaction proceeding. The report says a further request for an extension was denied. In a statement, The Star said:

"As of this morning, the parties have been unable to reach agreement on a number of outstanding commercial issues which in turn prevent the finalisation of long form documents."

The source does not disclose what those commercial issues were.

What The Star now owes

As a result of the collapse, The Star faces demands to repay proceeds and contributions received since the original HoA was agreed. The report breaks the total into two parts:

- A$10 million, which The Star had received from its joint venture partners since the HoA was signed. This must be settled by Wednesday 6 August. - About A$31 million in equity contributions that the partners had been making to DBC since the end of March to cover The Star's commitment. This must be paid back by 5 September.

Together the two amounts come to about A$41 million. The source does not say how The Star intends to fund the repayments, or whether it has disputed the demands.

According to the report, the news was poorly received by investors. At one stage last Friday morning The Star's share price fell 16.4% on the ASX.

Wider pressures on the operator

Gambling Industry News describes the collapse as the latest setback for the company. It reports that The Star posted a net loss of A$302 million for the first half of its fiscal year ending 31 December 2024. In that period it also faced a possible $100 million fine from the New South Wales Independent Casino Commission. The source does not state the currency of the fine, and it does not say whether a penalty has since been imposed.

The Star operates three resort destinations in Australia: The Star Brisbane, The Star Gold Coast and The Star Sydney. They offer casino, poker and table games. The report notes that the company does not offer online casino gaming, which is prohibited for Australian customers under the Interactive Gambling Act 2001.

DBC is the joint venture between the three companies that developed Queens Wharf Brisbane, a resort the report values at A$3.6 billion. It is home to The Star Brisbane.

The source does not say what happens next to The Star's ownership stakes in DBC and DGCC, or whether a new sale will be pursued. Pokiestralia will report further details if they are made public.