Published on: December 10, 2024, 11:59h.
Last updated on: December 10, 2024, 12:41h.
The Star Gold Coast achieved a rare victory last week when the Queensland government announced a delay in the suspension of the Broadbeach Island resort’s gaming license.
The Star Gold Coast, one of two properties in Queensland owned and operated by embattled Australian casino firm Star Entertainment, was facing a 90-day suspension of its gaming license starting on Dec. 20, 2024. However, the Queensland government has decided to postpone the suspension until the following year or possibly even revoke the temporary interruption altogether. A final decision will be made by March 31, 2025.
The [Queensland Premier David] Crisafulli Government upholds the highest standards in casino operations integrity, and is dedicated to transparency and rebuilding the trust of Queenslanders in the regulatory process,” said the Honorable Deb Frecklington, Queensland’s attorney general and minister for justice and integrity.
Frecklington clarified that the deferment of the license will allow more time for government investigators to assess how The Star Gold Coast is addressing a range of issues.
March Deadline
In August, Star Entertainment was once again found unsuitable to hold a gaming license in New South Wales (NSW). An inquiry by the state government concluded that The Star Sydney, the most important asset in the company’s three-casino portfolio, was not fit to operate casino games.
The inquiry revealed that Star Sydney turned a blind eye to suspected money laundering and did little to prevent criminal organizations from accessing its gaming floors. This prompted officials in Queensland to investigate whether similar practices were being carried out at The Star Gold Coast. Star Entertainment also owns and operates the newly opened Star Brisbane.
Investigators in Queensland found indications of regulatory deficiencies at the Gold Coast property and recommended a three-month suspension of the resort’s gaming license.
Frecklington emphasized that the deferment of the license should not be interpreted as a guarantee of a further postponement or averted suspension. However, this decision mirrors the actions taken in NSW, where the initial proposal to suspend The Star’s gaming license was later reversed in favor of the company paying a AU$15 million (US$9.56 million) fine.
Previously, the NSW Independent Casino Commission fined The Star Sydney AU$100 million after the 2022 inquiry found the casino to be noncompliant in anti-money laundering and crime prevention measures.
Revenue by Property
Star Entertainment is facing challenges as business declines at its three properties due to changing regulatory environments prompted by government investigations. Many high-rolling customers from China have moved to more attractive gaming markets, and implementing regulatory changes has led to increased expenses.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped from AU$237.5 million in the 2022 fiscal year to AU$174.7 million in FY2024, representing a decline of over 26%. Each share lost nearly AU67 cents.
In FY24, Sydney was the highest revenue generator at AU$877.5 million. However, due to high operating costs of AU$578.5 million, the resort’s EBITDA was only AU$51.8 million.
Gold Coast generated revenue of $456.1 million and achieved EBITDA of AU$71.3 million after expenses of AU$307.3 million. Brisbane reported an EBITDA of AU$51.6 million on revenue of AU$344.2 million and expenses totaling AU$205.2 million.