The Queensland Government has deferred a planned 90-day suspension of the gaming licence held by The Star Gold Coast, the Broadbeach Island resort owned and operated by Star Entertainment. The suspension had been due to take effect on 20 December 2024. According to Casino.org, the government said it would defer the suspension until next year or possibly lift it entirely, with a decision to be made by 31 March 2025.
What the Queensland Government said
Queensland Attorney-General and Minister for Justice and Integrity Deb Frecklington said the delay would give government investigators more time to examine how the Gold Coast property is taking remedial steps in "fixing a litany of problems", as reported.
"The 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." — Deb Frecklington, Queensland Attorney-General
Frecklington also said the deferral should not be taken to mean a further deferral will be granted or that a suspension will not occur. The source does not set out what specific remedial steps are under review, nor what the investigators found at the Gold Coast property beyond the general description below.
How the case arose
The Queensland action follows events in New South Wales. In August, a government inquiry there found Star Entertainment unsuitable to hold a gaming licence, concluding that The Star Sydney, the company's most important asset, was unfit to run casino games. According to the report, the inquiry found Star Sydney looked the other way on suspected money laundering and did little to keep criminal syndicates off its gaming floor.
That prompted Queensland officials to examine whether similar practices occurred at The Star Gold Coast. The report says Queensland investigators found evidence suggesting regulatory shortcomings at the property, and a three-month suspension was moved. Star also owns and operates the newly opened Star Brisbane.
The New South Wales experience offers a possible parallel. Casino.org reports that the NSW inquiry initially proposed suspending Star's gaming licence, but this was later reversed in favour of a AU$15 million (US$9.56 million) fine. The NSW Independent Casino Commission had earlier fined The Star Sydney AU$100 million after a 2022 inquiry found it noncompliant in safeguarding against money laundering and criminal syndicates. The source does not say whether Queensland will follow the same path.
Financial pressure on the operator
Casino.org describes Star Entertainment as under strain as business declines at its three properties. It says most high rollers from China have moved to other gaming markets and that regulatory upgrades have sharply increased overheads. These are the publication's characterisations rather than figures from the Queensland Government.
The reported figures show the company's earnings before interest, taxes, depreciation and amortisation (EBITDA) fell from AU$237.5 million in the 2022 financial year to AU$174.7 million in FY2024, a decline of more than 26%. The report adds that each share lost almost AU67 cents.
For FY24, the report says Sydney generated the most revenue at AU$877.5 million but recorded EBITDA of AU$51.8 million after AU$578.5 million in operating expenses. The Gold Coast generated revenue of $456.1 million and EBITDA of AU$71.3 million after AU$307.3 million in overhead. Brisbane posted EBITDA of AU$51.6 million on AU$344.2 million in revenue and AU$205.2 million in expenses. The source does not explain how the revenue, expense and EBITDA figures reconcile, so they should be read as reported rather than independently verified.
Star Entertainment's own response to the deferral is not included in the source material.