Queensland premier suggests The Star could sell casinos
David Crisafulli also suggested tax negotiations could be on the table.
Australia.- Amid The Star Entertainment Group’s financial crisis, David Crisafulli, the premier of Queensland, has said he is open to discussing possible tax relief to prevent job losses and has suggested Star venues could be taken on by another company.
He told reporters: “I would suggest to you there’s not a lot of workers who care what the name of the company is. They just want a job and we have exactly the same attitude. If the operation can remain open if whoever owns it is able to then invest in the developments that were promised, and were always part of the deal, that will create more jobs.”
The closure of the Star’s Brisbane and Gold Coast venues would affect 6,000 workers. However, opposition leader Steven Miles questioned Crisafulli’s stance and the possible use of taxpayer funds to support a business in financial distress. He told Sky News: “I think most Queenslanders would prefer to see that money allocated to health or housing or education or preventing family and domestic violence.”
New South Wales premier Chris Minns has ruled out any financial support for the Star. He said: “We’ve got funding requests right across NSW, from roads to psychiatrists to nurses to the railways. I mean, I don’t have money for casinos, I’m sorry.”
On Monday (January 20), Star shared financial results for the second quarter of its financial year. It posted revenue of AU$299m (US$185.4m), down 15 per cent sequentially. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were negative AU$8m (US$5m) compared to AU$18m (US$11.84m) in the previous quarter.
The company said the decline in revenue was mainly due to the closure of Treasury Brisbane Casino and softness at The Star Sydney following the implementation of mandatory carded play and cash limits partially offset by revenue growth at The Star Gold Coast.
The Star Sydney revenue was AU$176m (US$109.1m), down 6 per cent sequentially and 23 per cent in year-on-year terms. EBITDA was negative AU$4m (US$2.5m) compared to negative AU$21m (US$13m) in the first quarter. The Star Gold Coast revenue was AU$111m (US$68.8m), down 7 per cent year-on-year but up 3 per cent compared to the previous quarter. EBITDA was positive at AU$11m (US$6.8m) but down 48 per cent yearly.
Treasury Brisbane posted revenue of AU$2m (US$1.2m) and negative EBITDA of AU$2m (US$1.2m). The venue closed on August 25. The Star Brisbane, which commenced operations on August 29, brought in AU$10m (US$6.2m). EBITDA was negative AU$13m (US$8.1m).
The company’s available cash as of December 31, 2024, plunged to AU$79m (US$49.16m). That’s a decrease of AU$70m (US$43.56m) from the previous report at the end of September 2024.
The Star Gold Coast licence suspension deferred
In December, the Queensland Government announced a deferral of the suspension of The Star Gold Coast casino licence until March 31, 2025. The delay will allow the government to evaluate the casino’s progress in implementing its remediation plan, which covers cultural reform, safer gambling, risk management, financial crime and governance. The Star’s compliance with these measures will undergo a formal assessment in February.
