Gold Coast second casino: Mayor rejects Star Gold Coast’s $100m convention centre offer over exclusivity

A deal to spend $100m upgrading the Gold Coast Convention Centre and building “a theme park in the sky” has been rejected by an unexpected source.

GOLD Coast Mayor Tom Tate says he can’t support a casino monopoly for Star Entertainment Group despite its offer to fund a $100 million convention centre expansion.

Star chairman John O’Neill yesterday told shareholders the casino resort giant would fund a much-needed extension to the Broadbeach centre and commit to fulfilling Star Gold Coast’s $2 billion masterplan in return for “exclusivity” from State Government.

Mr O’Neill, confirming the proposed offer as revealed in yesterday’s Bulletin, added a Sheraton Mirage redevelopment and beach club would also be part of the deal.

But Cr Tate, a long-time supporter of a second rival casino being explored by State Government, said while he welcomed Star’s proposed investment package he could not support any monopoly.

The Star Gold Coast Masterplan Development

“We on the Gold Coast do not believe in monopoly. I know Star would want exclusivity for 20 years and that would lock us in as the only shop in town.

“Competition is the best thing for the city of the Gold Coast and they should go ahead and upgrade the Sheraton and convention centre,” Cr Tate said, adding: “Monopoly is an old, tired game.”

Tourism Industry Development Minister Kate Jones, who called for registrations of interest in developing a Global Tourism Hub and associated casino on the Gold Coast earlier this year, was yesterday tight-lipped on Star’s bombshell offer.

Tourism Minister Kate Jones has been tight-lipped on the offer.

“It’s really encouraging that the Star at the highest levels believe that it makes sense for them to continue to invest in the Gold Coast,” she said. “In relation to the proposal by The Star, there is currently a process underway for a potential Global Tourism Hub for the Gold Coast.”

A State Government spokesman added: “The Global Tourism Hubs process is subject to strict probity requirements".

“The government cannot comment on the Star proposal while the Gold Coast Global Tourism Hub process is under way.”

Clubs Queensland spokeswoman Laura Bos, whose members believe a GTH will decimate RSL and surf club operations, said the Star offer was a “strong play” and would be “great for the GC”.

Mr O’Neill told shareholders if the Star offer was agreed to by State Government the convention centre expansion work could start immediately.

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Star Entertainment Group chairman John O'Neill, and CEO Matt Bekier. Photographer: Liam Kidston.

“It’s not work that might be somewhere down the track. It’s real and we’re ready to commit here and now. That’s a timeline a long-running process is incapable of delivering.”

Mr O’Neill also revealed the final tower at its Broadbeach Island would feature a five-star hotel and potentially an adult adventure tourism precinct with entertainment and luxury dining.

Mr O’Neill added in return for the investment Star would want “certainty around maintaining the Gold Coast as a one-casino city - just like Brisbane”.

“This level of commitment to the Gold Coast from The Star would require exclusivity arrangements which we would similarly discuss with Government.”

Ms Jones has previously said the GTH development could be a five-year process.

Mayor Tom Tate. Picture: Tim Marsden

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Destination Gold Coast CEO Annaliese Battista, who believes the city is missing out on tens of millions worth of bigger conferences due to lack of a centre expansion, said: “We have been advocating for an upgrade of the convention centre for more than a decade and we are delighted that Star has taken the lead on what is a much-needed piece of infrastructure”.

Star has officially written to State Government presenting its offer but is yet to hear back.

Star CEO Matt Bekier said exclusivity was essential to its investment package going ahead: “We have heard the community talk about tourism investment and we can make it happen now".

“But we need something in return and right now we are under no obligation to build anything.

“We have told the Government we are willing to commit to a timeline of building these towers so there is certainty rather than empty promises.”