Star Casino group’s implosion could cost thousands of jobs – as fears grow the gaming giant could go out of business within weeks in Australia’s biggest corporate collapse in years

Star Entertainment Group could face bankruptcy within weeks as the future of its casinos in Sydney, Brisbane and the Gold Coast – along with the thousands of jobs they provide – is in doubt.

The gaming giant warned it has just $79 million in its bank accounts and is struggling with a drop in the number of gamblers at its venues, along with more than $100 million in fines imposed on it over licensing breaches.

Analyst Angus Hewitt of investment research firm Morningstar told clients in a note that without a lifeline, the company would be “lucky if it makes it to February 28.”

The group’s new crown jewel – a casino in Brisbane’s massive $3.6 billion Queen’s Wharf development – had its grand opening just a few months ago and could soon close its doors again in February, according to its largest stakeholder.

Pub magnate Bruce Mathieson sounded the alarm this week that Star Casino could ‘go bankrupt or be bought’ within weeks as the company continues to burn through its cash reserves.

More than 3,000 employees in the casino, hotel and retail areas help run the Brisbane precinct alone and if it were to close they could all be left jobless. This led to assurances from Prime Minister David Crisafulli that those affected would be cared for.

However, if Star goes bankrupt, it would be the biggest business collapse since Virgin Australia succumbed to Covid pressures in 2020.

The Brisbane location and Star’s other locations in Sydney and the Gold Coast could be split up and sold if money runs out before a solution is found.

Queensland Treasurer David Janetzki has been in talks with Star but has warned the Queensland Government is unlikely to bail out the operator.

Mr Crisafulli did not speculate on what would happen to the casino but offered reassurance to anyone whose job is at stake.

“I’m very confident, regardless of ownership — that doesn’t mean either way — but regardless of what happens to that entity’s ownership, the focus has to be on providing employment here,” he said.

‘It’s not our job to worry about the corporate suits hanging around a company. The future of Star is Star’s business.’

Mr Crisafulli stressed the importance of ensuring the area remains a business and recreational hub, regardless of who operates the Star’s current building.

“Our focus is on the men and women who work there, not on casino joints,” he said.

McCann also lobbied the New South Wales government for financial assistance in 2024, but Premier Chris Minns quickly ruled out that option.

The NSW Premier highlighted concerns that any payouts would “primarily support Star’s Queensland expansions” rather than addressing any issues with operations in his own state.

Star’s cash reserves fell 46 percent between September and December, the casino giant told the Australian Stock Exchange this week.

Since September 30, the casino has lost $70 million and now only has $79 million left.

A number of landers have warned that Star Entertainment could enter voluntary administration within months.

Star chief executive Steve McCann told stakeholders that his main concern was ‘trying to achieve a viable outcome for the business’.

“The focus is on saving jobs and providing a sustainable future for our 9,000 hardworking team members,” he said.

Ahead of the Queensland state election in October, Labor had awarded Star a casino license, which the new LNP government has since challenged.

Mr Crisafulli said the casino has failed to meet its previous obligations regarding tenant accommodation, dining and retail areas.

“There have been commitments made that have not been kept, but let’s focus on the immediate priority, which is the workers who are there,” the Prime Minister said.

Star Entertainment had also proposed financial support to the previous Labor government, but this also did not materialise.

Labor was not convinced that if Star collapsed it would ever get its money back and the casino refused to stop paying its executives’ bonuses.

Mr Hewitt told his Morningstar clients that he did not believe Star could get back on its feet before the money ran out.

“Star needs a more immediate solution and we believe it is unlikely to be able to extricate itself from this predicament,” he said.

Star Brisbane officially opened on August 29, 2024, two years later than planned.

The $3.6 billion precinct was planned to open in phases, with the first phase of the unveiling focusing on restaurants, bars and public spaces.

However, within days of opening, it was already requesting tax relief from the then Labor government, which Prime Minister Steven Miles had received before the election.

“The worst-case scenario would be that they have to close their doors not long after they open,” Miles said in September.

Star has casinos in Brisbane, Gold Coast and Sydney, with the Gold Coast location being the largest casino in Queensland.