Gold Coast second casino: Talks with Star to settle fate of controversial development

Talks are about to get under way which insiders believe will resolve the debate over a second Gold Coast casino.

A FINAL deal about to be played out will determine the fate of the Gold Coast’s planned second casino.

The State Government will soon start talks with The Star. What comes from that will determine whether the Government proceeds with its global tourism hub, or the Broadbeach casino retains its monopoly.

The Government is being forced to play its hand after Star Entertainment Group Queensland managing director Geoff Hogg flagged two months ago that the tourism operator would upgrade the Gold Coast Convention and Exhibition Centre at Broadbeach if the Government provided “certainty” in the second casino debate.

Star wants “exclusivity’’ on the Gold Coast if it is to commit to the rest of its $2 billion Gold Coast masterplan, with up to $100 million to be allocated for the convention centre.

Who has the upper hand — the State Government or The Star in final game on second Gold Coast casino?

In the background, respected business leader John Witheriff delivered the Gold Coast Tourism Advisory Report after consultation on whether the community wanted a new integrated resort and casino. His report about the GTH is with Cabinet and remains confidential.

A wide range of stakeholders provided feedback to the consultants.

On one side are some extremely smart business operators who are desperate to develop fresh, world-class tourism facilities, aware the last major development here was the Palazzo Versace on The Spit decades ago. Look across the Broadwater and see the outdated facilities, they say.

Their opponents are a residents group. Speaking to retirees living in units near Carey Park, a site next to the Broadwater that has been touted as likely for a second casino resort, they reveal they are not so much against a casino, just that location. Don’t build it here in our front yard, they say.

John Witheriff has delivered a report on the GTH. Picture: Adam Head.

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Like most reports, it will find the middle ground. Gold Coasters either support or do not have concerns about a casino as long as it is part of a world class package.

The problem for the Government is Carey Park.

It is the only site large enough and in the right spot – close to the water and light rail.

John Witheriff’s toes have rarely left Gold Coast sand. He backs big infrastructure projects that he knows will in the long run gain paying passengers and help the community, just like light rail.

He almost certainly will advise that former councillor Eddy Sarroff, who heads the protest group and has placards set up at the park, is not leaving.

Mr Witheriff will not shy away from saying Gold Coasters at this point are not sold on the need to lease public land to a casino consortium.

Minister for Tourism Industry Development Kate Jones at the installation of the first of up to 10 cranes on the $3.6 billion Queen's Wharf Project construction site — the Gold Coast’s project by comparison is proving more tricky. Picture: AAP.

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A political source says the Government, unlike with the GTH bid in Cairns, never faced an issue with trying to attract resort investment on the Glitter Strip.

“We are spoiled for choices, (with) the number of world-class entertainment venue operators that want to build on the Gold Coast. The Sunshine Coast struggles to build anything. At Cairns you struggle to get someone interested and that’s why they were offered prime waterfront land,” the source says.

So where does this all leave the deal with The Star?

What does The Star’s offer of expanding the Gold Coast Convention and Exhibition Centre mean for its future casino licence?

In Brisbane, the $3.6 billion Queens Wharf resort due to open in 2022 must first provide about $350 million of public assets including a new open-air cinema, a pedestrian bridge across Brisbane River, a skydeck and the upgrading of nearby heritage buildings.

An artist’s impression of changes to the Brisbane River and City for the Queens Wharf development, Brisbane.

Whatever The Star brings to the table, the Government is unlikely to fold its cards and agree to give it a 30-year exclusive casino licence on the Coast.

But it could agree to stall the GTH bid, negotiate some new public facilities at no cost to the taxpayer and win, rather than lose votes, for the state poll next year.