The woes surrounding Star Entertainment has been a highly talked about event in the last few weeks. How many of us have walked past the marvellous structure overlooking Darling Harbour or even walked through its doors, in awe at the amazing architecture and design? But behind all the glitz and glamour, a terrible fate was brewing for one of the leading hotels and casinos in the country.

Financial Turmoil

Cracks had begun to appear in Star Entertainment’s financial situation over the last year. It reached a breaking point when the ASX suspended Star’s shares on the 3rd of March after the entertainment giant failed to issue its earning updates for the first half of the financial year. Many news outlets were quick to report that Star was on the brink of collapse, leaving the fate of 9000 employees hanging in the balance.

A Lifeline

Star reached a deal with its Hong Kong-based partners, Far East Consortium (FEC) and Chow Tai Fook Enterprises (CTF), where Star will exit its stake in Queen’s Wharf Brisbane in exchange for full ownership of its Gold Coast casino project.

Through the deal, Star will secure a A$53 million cash injection by selling its 50% stake in Queen’s Wharf Brisbane to FEC and CTF. The finalised deal includes both a liquidation of SE’s stake and an asset swap. In return, Star will take full control of its Gold Coast casino project, acquiring the 66.67% stake previously held by its Hong Kong-based partners. This fire sale, signed off by CEO Robbie Cooke and Chairman David Foster, is a last-ditch attempt to keep the company afloat.

Whilst Star gains full control of its Gold Coast project, many critics are quick to point out that this merely reshuffles liabilities. FEC and CTF walk away with a multi-billion-dollar commercial prize, while Star has effectively handed over its stake in Brisbane’s most highprofile development for a fraction of its projected value. On the surface, appearing to be a deal that benefits all parties, the terms appear to lean in favour of FEC and CTF, further expanding their footprint in Australia’s commercial real estate sector.

The Dark Side of Gambling

The devastating effects of the gambling industry can be seen with the homeless, families shattered by addiction, and pensioners spending their savings at poker machines. Billions are drained from communities and funnelled into corporate coffers.

When the collapse inevitably comes, the same executives who signed these deals will exit unscathed, golden parachutes intact. Those who lost everything will be left behind. Governments will promise reviews and reforms, but history shows the cycle will repeat.

Conclusion

Star’s A$53 million deal risks puts 9,000 jobs in jeopardy and hands over one of Australia’s largest real estate assets to foreign ownership. As inflation rises and competition weakens, the need for urgent regulatory reform could not be clearer. Otherwise, the next collapse won’t just take down a casino—but expose a system beyond repair.