The Star Entertainment Group will have to repay $26.6 million (AUS$41 million) after the planned sale of its interest in the Destination Brisbane Consortium (DBC) collapsed.
A deadline of July 31 had been set for the Australian casino operator to sell its 50% stake in DBC to Hong Kong-based Chow Tai Fook Enterprises and Far East Consortium International, its joint venture partners.
It is the latest setback for the troubled operator who posted a $192 million (AUS$302 million) net loss for the first half of the fiscal year ending December 31, 2024, a period in which it had also faced a possible $100 million fine from the regulator, the New South Wales Independent casino Commisson.
As a result of the deal falling through, The Star is now facing demands for repayments of proceeds and contributions received since the sale was first agreed, amounting to $26.6 million (AUS$41 million).
The Star operates three luxury resort destinations in Australia, The Star Brisbane, The Star Gold Coast and The Star Sydney, with casino, poker and table games, although it does not accommodate online casino gaming.
Why Has The Star Deal Collapsed?
DBC is the joint venture between the three companies that developed the $2.32 billion (AUS$3.6 billion) Queens Wharf Brisbane resort, home to The Star Brisbane.
The Star signed a binding head of agreement (HoA) in March 2025 which would have seen the company sell its 50% ownership interest in DBC, plus its one-third equity interest in Destination Gold Coast Consortium (DGCC) to its joint venture partners from Hong Kong.
The sale should have completed on June 30, but after The Star was unable to meet that deadline, Chow Tai Fook Enterprises and Far East Consortium International submitted notice to terminate the arrangement.
A few days later, The Star announced that the companies had agreed on a revised HoA termination date of July 31.
That deadline came and went last Thursday with The Star still unable to proceed and a further request for another extension was denied.
A statement from the casino operator read: “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 Star Counting The Cost
As a result, The Star has now been asked to repay the $6.5 million (AUS$10 million) it had received from its joint venture partners since the original HoA was agreed.
That has to be settled by this Wednesday, August 6.
The Star’s joint venture partners had also been making equity contributions to DBC since the end of March to cover The Star’s commitment.
All of these funds, totalling around $20.1 million (AUS$31m) must also be paid back by September 5.
The news was not well received last Friday morning as at one stage The Stars’ share prices fell 16.4% on ASX, Australia’s largest stock exchange.
Jim Munro is a betting industry and gambling expert who has been a national newspaper journalist for over 30 years, predominantly at The Sunday Times and The Sun, where he wrote a weekly soccer betting column. Jim also worked on the launch of Virgin Bet with Gamesys and was subsequently head of editorial at LiveScore, the sports media and betting group.
