The Queen’s Wharf precinct in Brisbane may soon undergo significant changes in its casino operations. The owners, Chow Tai Fook Enterprises and Far East Consortium, are actively negotiating the replacement of the current operator, Star Entertainment.

Star’s two partners in the Queen’s Wharf project, each holding a 25% stake, are in talks to acquire the remaining 50% interest from Star, aiming to transfer operational control by early 2026.

According to the Australian Financial Review (AFR), a key part of the plan involves potential cooperation with Crown Resorts, owned by Blackstone. This U.S. investment firm operates casinos in Melbourne, Sydney, and Perth.

If the deal goes through, it would mark Crown’s first entry into the Queensland market. Experts consider Crown the preferred candidate due to its recent success in passing stringent regulatory compliance checks in other Australian states.

In parallel with negotiations with Crown, the consortium has also begun preliminary talks with other potential operators, including SkyCity Entertainment and Delaware North, according to AFR.

Crown Resorts was acquired by Blackstone in 2022 for $8.9 billion, following a series of investigations into its corporate governance and regulatory compliance. Since then, Crown has made notable improvements in its anti-money laundering and counter-terrorism financing systems, earning regulatory approval to continue operating in Australia’s major jurisdictions. This gives Crown a distinct advantage over Star, which continues to face ongoing legal and financial challenges.

Star Entertainment first announced plans to sell its 50% stake in the Queen’s Wharf project in March.

Under the preliminary agreement, Star would temporarily continue managing the Queen’s Wharf casino, receiving a fixed monthly fee of $5 million through at least 31 March 2026.

The deal also granted Star access to $53 million in liquidity, a crucial component in maintaining solvency amid increasing regulatory and financial pressure.

However, the negotiations have reportedly stalled over disagreements regarding the terms of operational control, which has delayed the signing of the final agreement, initially expected in April.

If a deal is not finalized by 31 July, Star may be required to pay a $36.5 million penalty to its partners.

While Crown is not the only contender, sources familiar with the discussions say it has emerged as the front-runner due to its strong compliance record and trusted standing with regulators.

However, the Queensland government will need to approve any operator change, and sources note that preference will be given to a company capable of meeting strict suitability and probity standards.

Queen’s Wharf is one of Brisbane’s most significant urban renewal projects, featuring luxury hotels, retail spaces, residential towers, and entertainment facilities. However, its reputation has been damaged by budget overruns, construction delays, work stoppages, and, now, instability among casino operators.

Source