Star Entertainment Group licence suspension delayed again, special manager to stay in place

The State Government has handed drowning company Star Entertainment Group a gulp of oxygen as it flounders with financial and regulatory turmoil.

The Queensland Government has handed drowning company Star Entertainment Group a gulp of oxygen as it flounders with financial and regulatory turmoil.

The government has again deferred a ruinous 90-day licence suspension, giving the company until September 30 this year to get its house in order after devastating money laundering and problem gambler findings.

It’s the fourth time Star has won a deferral of the ban, which was initially due to take effect from December 1 2023, but was pushed back by the previous Government to May 31 2024.

The punishment was deferred again until December 20 last year, before the new LNP Government granted another delay until March 31.

In making its decision, the Government reviewed The Star’s progress across priority remediation measures, as outlined by Special Manager Nicholas Weeks.

Attorney-General Deb Frecklington said that it was important for the public to have confidence in The Star and the Government would continue to assess its remediation progress during the six-month deferral period.

“The Government has made it clear that our expectations have not changed and The Star must progress its remediation,” the Attorney-General said.

“Based on the advice of the Special Manager we are satisfied The Star has been continuing to make positive progress under the agreement.

“The extension will provide The Star with additional time to deliver on its outstanding commitments while keeping its doors open.

“This deferral does not prevent us from taking immediate action should The Star fail to meet its remediation obligations.”

The Star will remain under the close supervision of Mr Weeks, who has also been extended in the role of Special Manager to the end of September 2025.

Star managing director Steve McCann welcomed the decision.

“The Star recognises the importance of continuing to deliver on its commitments under the remediation plan and returning to suitability,” he said.

The company pulled three last-minute proposals out of its hat earlier this month in an effort to save it from almost certain collapse.

The Star Gold Coast. Picture Glenn Hampson

Star said it had negotiated $750m in loans to pull it out of its cash flow crisis and agreed to sell its share of its Brisbane assets – including Queens Wharf and Treasury Hotel – to its joint venture partners.

Under the deal, Star would take full ownership of The Star Gold Coast – the group’s best-performing property – including the two hotels and residential towers that were two-thirds owned by Chow Tai Fook and Far East Consortium.

US casino group Bally’s Corporation then made an unsolicited, non-binding rescue proposal that would pump a minimum $250m into the group.

The Board of Star said it will review Bally’s proposal, however it told the ASX there was no certainty the 11th hour bid would be successful.

Uncertainty over the future of the company has boiled over after it revealed financial results on January 20, noting a “material uncertainty” over its ability to stay afloat.

Star Entertainment Group CEO Steve McCann last month said the group could return to profitability if given more “time and support”, but was realistic about the enormity of the turnaround task.

It has been suspended from trading on the ASX since March 3, after being unable to publish its half-year financial reports.

Originally published as Star Entertainment Group licence suspension delayed again, special manager to stay in place