Crown Resorts in Talks to Take Over Queen’s Wharf Operations from Star

Brisbane’s AU$3.6 billion Queen’s Wharf integrated resort appears to be preparing for an operational overhaul, with joint venture partners Chow Tai Fook Enterprises and Far East Consortium advancing talks to install Crown Resorts as the casino operator.

The Hong Kong-based developers, who hold a 50% collective ownership, are nearing the end of their acquisition of Star Entertainment’s remaining 50% stake. The process was accelerated by March’s interim AU$53 million financing lifeline that preserved Star’s management role through Q1 2025. However, tensions are brewing over whether the embattled group should retain operational control of the property.

Outstanding Performance Sparks Consideration

Despite competing bids from global brands like SkyCity and Delaware North, Crown Resorts has solidified its position as the prime candidate to assume Queen’s Wharf’s casino operations.

Industry analysts speculate that Queensland regulators could favor Crown for demonstrating its compliance capabilities, especially after its 2022 acquisition by Blackstone. Under the new ownership, the operator has resolved historical anti-money laundering failures across its Melbourne, Sydney, and Perth properties.

These regulatory capabilities contrast with Star’s ongoing struggles, giving Crown leverage. The potential appointment carries some historic relevance since Crown initially contested the Brisbane license in 2015 before losing it to Star. A successful operational takeover would not only welcome Crown to Queensland’s gaming market for the first time but also signal its full recovery as a trusted brand under Blackstone’s leadership.

Star’s Stability Struggles

With Star Entertainment facing a looming July 31 deadline to finalize its Queen’s Wharf exit agreement, the property risks becoming a costly liability. Failure to secure terms could Strip Star of critical assets, including a Tower 1 equity stake and third-phase funding.

Once touted as Star’s most prestigious venture, the project’s AU$1 billion budget overrun and AU$1.4 billion debt burden now threaten its viability. Bally’s proposed AU$300 million rescue package underscores the urgency, with chairman Soo Kim positioning his firm as a natural successor to the company’s operations. “We believe no one will be in a better position than ourselves to run these casinos,” Kim explained. “We cannot blame DBC partners for casting out looking for solutions.”

Licensing Scrutiny

Queensland regulators face pressure as CTFE and FEC’s ability to hold a casino license comes under examination. The scrutiny is fueled by historical reports of their executives’ ties to controversial junket figures. Although no formal barriers exist, the inquiry raises some doubts about the operational transition plans. For Star, the stakes are high as discussions on its AU$400 million AML failures penalty continue, which could trigger a collapse and industry-wide liquidity concerns.