The Star Gold Coast achieved a rare victory last week when the Queensland government announced the postponement of the Broadbeach Island resort’s gaming license suspension.
The Star Gold Coast, one of two Queensland properties owned by the troubled Australian casino company Star Entertainment, was scheduled to have its gaming license suspended for 90 days starting December 20, 2024. However, the Queensland government announced that the suspension would be deferred until next year or possibly lifted altogether, with a final decision expected by March 31, 2025.
“The [Queensland Premier David] Crisafulli Government has the highest standards for the integrity of casino operations and, unlike our predecessors, we are committed to transparency and restoring the confidence of Queenslanders in the regulatory process,” stated the Honorable Deb Frecklington, Queensland attorney general and minister for justice and integrity.
Frecklington explained that the postponement would provide additional time for government investigators to assess The Star Gold Coast’s efforts in addressing a range of issues.
In August, Star Entertainment was found unsuitable to hold a gaming license in New South Wales (NSW) once again. A government inquiry determined that The Star Sydney, the company’s most valuable asset, was unfit to operate casino games.
The inquiry revealed that Star Sydney ignored suspected money laundering activities and did little to prevent criminal syndicates from accessing its gaming floor. This led Queensland officials to investigate whether similar practices occurred at The Star Gold Coast. Star Entertainment also owns the recently opened Star Brisbane.
Queensland investigators discovered regulatory shortcomings at the Gold Coast property and moved to suspend its gaming license for three months.
Frecklington noted that the deferment should not be seen as an indication that a further deferral will be granted or that a suspension won’t occur. However, the development mirrors the situation in NSW, where an inquiry initially suggested suspending The Star’s gaming license but later opted for a fine of AU$15 million (US$9.56 million).
Previously, the NSW Independent Casino Commission fined The Star Sydney AU$100 million following a 2022 inquiry that found the casino failed to prevent money laundering and the presence of criminal syndicates.
Star Entertainment remains in a precarious position as business continues to decline at its three properties due to regulatory changes mandated by government investigations. Many high rollers from China have moved to more attractive gaming markets, and the implementation of regulatory upgrades has significantly increased overhead costs.
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, a decline of over 26%, with each share losing nearly AU67 cents.
In FY24, Sydney generated the highest revenue at AU$877.5 million. However, due to high operating expenses of AU$578.5 million, the resort’s EBITDA was only AU$51.8 million.
The Gold Coast generated revenue of AU$456.1 million and delivered an EBITDA of AU$71.3 million after accounting for AU$307.3 million in overhead costs. Brisbane reported an EBITDA of AU$51.6 million on AU$344.2 million in revenue and AU$205.2 million in expenses.
