Star Entertainment Sells Former Treasury Brisbane Casino Amid Regulatory Issues

Troubled Star Entertainment Group announced the sale of the former Treasury Brisbane Casino property in Queensland on Friday for AU$ 65.7 million (45.47 million USD). The embattled casino operator noted that it would rake in AU$60.7 million (40.9 million USD) of the net proceeds after the finalized deal with Griffith University. The announcement comes soon after the Treasury Casino shut its doors on August 25^th before the company launched Queen’s Wharf in Brisbane.

The Queensland casino sale is still awaiting government approval, along with a new grant and registry for a lease. The finalization of the sale is targeted to be completed around September 27^th this year.

Scramble for Financial Stabilization

Star Entertainment is working with its advisors to finalize the fiscal 2024 financial result. The operator states that the strategic divestment of the Queensland casino is part of a larger plan to stabilize the company’s finances. This comes after the trading of shares in the company was suspended last week due to its failure to lodge financial results in due time. This shortcoming emphasized the company’s governance and procedural failures.

Star Entertainment’s newly appointed chief executive, Steve McCann, remains locked in negotiations with the Queensland and New South Wales state governments seeking funding to bolster the group’s short-term finances.

Background of Significant Regulatory Scrutiny

The Treasury Casino sale comes at a time when Star Entertainment is marred by a regulatory scandal. The New South Wales Independent Casino Commission (NICC) underscores the operator’s minimal progress in rectifying its deeply entrenched governance and cultural issues.

Earlier this year, Adam Bell SC investigated the company on behalf of the NICC to determine changes in Star Entertainment’s practices. The probe focused on fraud and money laundering practices that first came to light in 2022. Bell’s scathing reports showed most of the operator’s issues were yet to be remedied.

Promises of Operational Efficiency and Regulatory Compliance

Star Entertainment plans to use the net proceeds from the sale to relieve its financial woes. By focusing the funds on operational efficiency, the company hopes to have a better standing in compliance. It continues highlighting its commitment to maintaining high service standards for its stakeholders, clientele, and community.

On the other hand, Griffith University expects to open a new campus on the Brisbane property in 2027. The institution intends to make the historical Treasury building its Business, Information Technology, and Law disciplines’ hub.