Chaos as The Star stripped from ASX days after Brisbane site grand opening

Thousands of jobs are potentially in limbo after Australia’s gambling giant The Star was suspended from the stock exchange.

The operators of Star Casino have reportedly told the market they are reviewing their liquidity position following days of silence after being suspended from trading.

The Star Entertainment Group was suspended by the ASX on Monday after it breached reporting conditions by failing to lodge its financial accounts for the past financial year.

The gaming giant said at the time it was still assessing its financial outlook amid reports it was pleading with banks, governments and investors for money.

The Star told the ASX late on Wednesday that it had engaged “various advisers … in relation to its liquidity position in light of adverse trading and other conditions”.

The Star’s $3.6bn, 12ha new site at Queen’s Wharf in Brisbane’s CBD began on August 29. Picture: Supplied

It comes after the staged opening of The Star’s $3.6bn, 12ha new site at Queen’s Wharf in Brisbane’s CBD began on August 29; days later, it is already in trouble.

The crown jewel of the new precinct employs about 3000 people with 1400 new jobs. The Star is reportedly in talks with the state government for $300m in funding.

Queensland Premier Steven Miles previously said the “worst-case scenario would be that they (Star) would have to close their doors not long after opening them”.

He added the state government would do everything it could to avoid that, with discussions about tax deferrals and labelled the site a “fantastic asset for our city”.

Queensland Premier Steven Miles previously said the ‘worst-case scenario’ would be if the casino shut. Picture: NewsWire / John Gass

The casino operator was found to be unsuitable to hold a casino licence by lawyer Adam Bell SC who was commissioned by the NSW casino regulator.

In his second report, Mr Bell determined The Star breached casino laws and found it unsuitable for a licence – the second time in two years – but did not recommend it close.

The report noted The Star had overhauled its leadership since the probe began but it was nonetheless a blow to the casino chain after it was exposed for key failings in recent years.

Austrac launched civil proceedings in 2022 against The Star and The Star Entertainment Queensland over alleged serious and systemic noncompliance.

The regulator alleged The Star had not complied with Australia’s strict anti-money laundering and counter-terrorism financing laws.

The NSW government has told The Star it is not prepared to consider deferring or waiving gaming or payroll tax, a budget estimates hearing was told.

“The NSW government is not considering that at this point and the indications that we have been provided with is that support would not be supporting jobs her in NSW,” state Finance Minister Courtney Houssos said.

She said the support it had provided to The Star last year was to “clean up the mess we inherited”.

The NSW government says it is unlikely to extend payroll or gaming tax concessions to the The Star Casino group. Picture: NewsWire / Damian Shaw

Treasury secretary Michael Coutts-Trotter said issues this year were “much more complex”, with The Star’s financial problems largely due to the Queen’s Wharf venue in Brisbane.

Opposition gaming and tourism spokesman Kevin Anderson called on the Minns government to do more “to protect the thousands of jobs that could be cut if The Star casino loses its licence”.

He said 11 million people visited The Star every year and it was central to the city’s night-time economy.

“Not only are the livelihoods of 4000 workers on the line, but the situation would also be catastrophic for the tourism and arts sectors in Sydney,” Mr Anderson said.

“If this were any other business, the government would come to the table and intervene in some way.

“I am calling on the government to come forward with what it will do to support all those affected.”

The Star was supposed to have lodged its financial accounts for the 12 months to June 30 last week but had failed to do so.

At the time, it said it was because it had received a copy of the second Bell inquiry into its culture and was still assessing its financial outlook.

On Monday, the Australian Securities Exchange or ASX announced it had temporarily suspended Star Entertainment Group and delisted them from the stock exchange.