Revealed: the stunning final conclusion to new Gold Coast casino deal
Queensland Government ends talks with major Gold Coast player over a global tourism hub in the city.
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THE State Government has killed off talk of a global tourism hub on the Gold Coast – and will not sign off on a monopoly deal with The Star for its Broadbeach casino-resort.
In a stunning development in the Coast’s future casino stakes, State Development Minister Kate Jones will announce on Saturday the Government has ended talks with The Star “by mutual agreement”.
Game on: ‘We’re not really The Star without the casino’
In September last year, The Star forced the Government to play its hand after offering to upgrade the Gold Coast Convention and Exhibition Centre in exchange for “certainty” in the casino debate.
The Star wanted “exclusivity” to commit to the rest of its $2 billion Gold Coast masterplan, with up to $100 million to be allocated for the convention centre.
But sources suggest that during talks in the past two months the Government could not agree to a monopoly licence, of up to 30 years, for The Star to operate the Glitter Strip’s only casino.
“Through the exclusive negotiation process for a Gold Coast global tourism hub we worked really hard to extract value from The Star, but the deal on the table did not stack up for taxpayers,” Ms Jones said.
“We were not able to reach consensus around the terms for long-term casino licence exclusivity. Global market conditions are clearly impacting investment at present and I can confirm that this government has no intention of reviving the market process for a new integrated resort – including a second casino – on the Gold Coast.”
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Ms Jones said the Palaszczuk Government would continue to work with the council and local businesses to support tourism investment on the Coast.
Sources suggest a Gold Coast GTH is not dead in the water and can be revived by a future government after the state election in October.
But Labor insiders believe taxpayers will be the losers in a monopoly deal and now is not the time to go to market for a new development given international tourists are unable to visit here under COVID-19 restrictions.
A Government source said: “While the negotiations have concluded, the Government has never walked away from a potential convention centre upgrade.”
The Government had been able to negotiate in a pre-COVID market about $350 million of public assets including a new open-air cinema and pedestrian bridge as part of the $3.6 billion Queens Wharf development in Brisbane.
The GTH Advisory panel chaired by leading businessman John Witheriff found the Gold Coast was split on a global tourism hub.
Mr Witheriff found new tourism infrastructure was crucial for growing Coast tourism, but the backlash against leasing public land like Southport’s Carey Park, considered the prime site, forced the Government to rule out that option.
The Star Entertainment Group chairman John O’Neill said the company and its partners had already committed about $4.5 billion to reinvigorate tourism in southeast Queensland.
“Investments in Queen’s Wharf Brisbane alongside those on the Gold Coast where we’ve refurbished The Star Grand hotel, opened The Darling hotel and have the Dorsett hotel and apartments tower under construction, are proof of our commitment to creating world-class tourism and entertainment destinations that will bring more than a million additional visitors to Queensland every year,” he said.
“We have confidence in the future of tourism and, under the right conditions, will continue to invest through our $2 billion-plus Gold Coast masterplan that will help government deliver further significant economic benefits for Queensland including thousands of jobs.”
Originally published as Revealed: the stunning final conclusion to new Gold Coast casino deal