Can The Brisbane Star Casino Be Saved? Options to Stay Afloat
Insolvency: 04 August 2025
Author: Erin Prout - Our People
On Friday 1 August 2025, the Star Entertainment Group Limited released a further update on the embattled financial crises surrounding the Casino at Brisbane’s, Queen’s Wharf.
Joint Venture Collapse and Financial Consequences
The update revealed that despite the Star’s attempts to continue to negotiate with its joint venture partners, being Chow Tai Fook Enterprises Limited and Far East Consortium International Limited, the Heads of Agreement for the joint venture had been terminated.
The termination of the Heads of Agreement has dire financial consequences for the Star, including:
a. A requirement to repay $10 million by 6 August 2025;
b. An obligation to reimburse equity contributions, by 5 September 2025.
This is estimated to be in the vicinity of $31 million.
Whilst some reports suggest that the Star will be able to meet these repayments as a result of a $300 million injection of cash received from US company Bally’s and its largest shareholder - it is clear that the upcoming payments are significant and may lead to issues of solvency.
Possible Solutions to Avoid Insolvency
Prior to any issues of insolvency arising, the Star could canvas the following options:
- A further injection of capital from existing directors or shareholders
- A further injection of capital through a public offering of shares on the Australian Stock Exchange
- Selling part of its ownership in the Destination Gold Coast Consortium, the Treasury Brisbane hotel and car park and/or the Charlotte Street car park. Whilst this may result in funds being made available for the Star, it may ultimately be futile if these assets are generating continued profit which are sold in exchange for paying off debts from an asset which is continuing to generate a loss
- Seeking finance, which will likely be met with a request for significant securities and guarantees
- Re-enlivening discussions with its joint venture partners and/or third parties, to sell its 50% ownership in the Queen’s Wharf development. Practically, this option may be more difficult if:
a. There has been a break down in the relationship between the joint venture partners, which cannot be repaired through a change in personnel or external advisors;
b. There is a perception in the market that the Star desperately needs to sell its assets to improve its liquidity. This may result in interested parties putting forward a low purchase price in exchange for prompt payment terms.
What Happens If Options Run Out?
If the above options are not viable or there is insufficient time to explore them, the Star may need to consider appointing an administrator to effectively trade on the business in an effort to avoid liquidation. This option will allow the Star to stay afloat but may lead to multiple administrations unless the underlying issues, are resolved. As our local Brisbane team have identified, one of these underlying issues is the need to drive business by having the Brisbane’s Star Casino be a destination point for tourism, like the Crown Casino is for Melbourne.
If you need assistance navigating cash flow or insolvency issues for your business, please contact one of our experienced insolvency and litigation lawyers.
Author - Erin Prout is a Principal Lawyer specialising in insolvency and litigation and is based in Aitken Partners Brisbane office.