Queensland leaves door open for Star Entertainment lifeline

The Queensland Premier has indicated Star Entertainment selling assets is a way forward for the casino operator that is facing collapse.

On Tuesday, David Crisafulli was at pains to say he would not comment on Star Entertainment’s financial viability.

But he did leave the door open for tax relief negotiations, while suggesting another operator’s name may well replace Star.

“I would suggest to you there’s not a lot of workers who care what the name of the company is. They just want a job and we have exactly the same attitude,” Mr Crisafulli said.

“If the operation can remain open, if whoever owns it is able to then invest in the developments that were promised, and were always part of the deal, that will create more jobs.”

The jobs of 9000 Star Entertainment staff in NSW and Queensland are in the lurch as the company calls on the state governments for a pause on gambling taxes.

On Monday, Star Entertainment Group told the ASX there was “no certainty” it could improve its financial position without help.

Steadily falling cash reserves leave little in the tank beyond late February.

NSW Premier Chris Minns has ruled out a lifeline.

“We’ve got funding requests right across NSW, from roads to psychiatrists to nurses to the railways. I mean, I don’t have money for casinos, I’m sorry,” Mr Minns said recently.

However, the Queensland government is keeping the door open to negotiations, which would affect 6000 workers at the newly opened Brisbane casino and the Gold Coast operation.

“Star’s operations is not the focus of the Queensland government,” Mr Crisafulli said on Tuesday, before treading a fine line between free market ideals and the welfare of Queenslanders.

“I’m not on their board. I have no interest in whether or not they are a viable entity. Whether they are or not. My concern is the people who work for them.

“And whoever they work for today or tomorrow, whether it’s the same company or a different one, whether an administrator is there or not, I just want that place to be opened and I want as many people as possible to have a job.”

While Mr Crisafulli avoided making comments on the liquidity of Star Entertainment, the company itself sent a grim announcement to the local share market on Monday.

In a statement, Star Entertainment said “in the absence of one or more of these (liquidity) arrangements, there remains material uncertainty as to the Group’s ability to continue as a going concern”.

“Given the reduction in the Group’s available cash as at 31 December 2024 and the Group’s ongoing financial and liquidity challenges, the Company and its directors continue to seek external advice in respect of their duties, including the applicability of, and the ongoing reliance on, the safe harbour provisions under the Corporations Act,” the statement reads.

“While discussions continue with respect to a range of different solutions, there is no certainty that any of these negotiations will result in one or more definitive arrangements that might materially increase the Group’s liquidity position.”