Gold Coast casino war gets hotter with Star threat in letter to State Government

Gaming giant The Star is threatening to tear up its partnership with the State Government if it green lights a second casino on the Coast.

GAMING giant The Star is threatening to tear up its partnership with the State Government, putting at risk $9 billion in investment, if it green lights a second casino on the Coast.

In an explosive letter to Premier Annastacia Palaszczuk and all of her Cabinet ministers, Star Queensland managing director Geoff Hogg urged the Government to “assess the costs of discontinuing a true industry partnership between the Palaszczuk Government and The Star that will leverage statewide benefits”.

The Star Gold Coast Masterplan Development (viewed from Broadbeach) — the site is home to the original hotel and gaming complex, the Darling suite hotel and Nineteen restaurant and bar.

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He said Macquarie published research showed a second Coast casino would have difficulty recouping an investment of more than $400 million and a ReachTel poll confirmed the majority of residents were overwhelmingly opposed to it.

Given “this new independent evidence” and Star’s commitment to work with the Government to leverage $9 billion of resort infrastructure in southeast Queensland “we again invite and encourage you to fully embrace the partnership we seek with your government”.

Mr Hogg wrote that he had received no response from the Government since writing on the same issue to Ministers earlier this month.

The Star Gold Coast Masterplan Development (viewed from the South East) at its island site at Broadbeach where the two existing towers will be joined by a Dorsett hotel tower now under construction followed by four more proposed towers intended to be rolled out progressively every two years through until 2028

An industry source said: “It’s a big power play. It’s a gun to the head of the Government. This is quite ridiculous. They have a contract to develop Queens Wharf (in Brisbane).”

Speaking to the Bulletin, a Star spokesman re-emphasised the casino’s $2 billion, seven-tower Broadbeach island masterplan was dependent on no new competitors.

A slim majority of city councillors voted at a full council meeting on Tuesday for the State Government to progress with a new gaming resort despite the new ReachTel poll revealing 68 per cent of Gold Coasters rejected another casino or more pokies as part of any development.

“The results of this research are consistent with previous polling that shows the Gold Coast community is overwhelmingly opposed to a second casino,” a Star Entertainment Group spokesman said.

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“We also remain consistent on our position that each stage of the (Gold Coast) masterplan will be dependent on the market and competitor landscape at the time.”

Star Gold Coast’s third tower to house a Dorsett hotel is under construction. But the masterplan, green-lighted by State Government, envisages four more towers at the site with one going up every two years.

Star CEO Matt Bekier has committed to the masterplan with no additional poker machines.

“The expanded masterplan would create the biggest tourism accommodation complex in Australia,” a Star spokesman added. “Its 3000 rooms would eclipse Marina Bay Sands in Singapore and be on a scale to compare with the largest resorts in Las Vegas.”