Struggling Australian casino operator The Star Entertainment Group (The Star) has secured another financial lifeline after agreeing to offload one of its businesses to an East Asian group of businesses.

The company has signed deals with Hong Kong-based Far East Consortium (FEC) and its subsidiaries, along with Chow Tai Fook Enterprises (CTFE) – collectively JV Partners, which will purchase one of its four resorts.

Once certain conditions are met, these agreements will allow The Star to leave its 50% ownership and management role in the Queen’s Wharf Brisbane integrated resort – a multipurpose residential and entertainment precinct.

Wendy Chiu, Executive Director and Joint Managing Director of FEC, explained that the agreements will enable the company to “keep the doors open” and safeguard thousands of jobs in the area.

She continued: “Entering into this transaction demonstrates our firm commitment to be responsible corporate citizens and trusted partners to the Queensland Government and DBC’s stakeholders. 

“As Brisbane prepares for the 2032 Olympic and Paralympic Games, we remain steadfast in our resolve to ensure QWB delivers lasting value for the people of Queensland.”

Redeveloped into a AU$3.6bn (£1,75bn) integrated resort starting in 2015, Queen’s Wharf Brisbane didn’t officially start opening, in stages, until 2024. It now aims to combine modern entertainment facilities with restored heritage buildings amidst the change in ownership.

Turbulence behind the talks

The latest deal follows many months of negotiations, whilst an earlier agreement fell through in August due to disputes about control of the Brisbane-based casino. That failed deal had apparently already cost The Star $10m in fees, and a further $31m payment is due in September.

Meanwhile, as part of the transaction, the JV Partners will acquire The Star’s 100% stakes in the Treasury Hotel and Treasury Car Park, as well as its 50% interest in the Charlotte Street Car Park.

These three assets are in close proximity to Queen’s Wharf and have been labelled as ‘strategically critical’ for guest experience.

In return, The Star will take over the JV Partners’ combined 66.67% interest in the Destination Gold Coast Consortium (DGCC), comprising the Dorsett and Andaz towers in Broadbeach. 

Meanwhile, FEC and CTFE still have the chance to be involved if there’s a new tower built at The Star’s Gold Coast premises. However, the group must pay $20m if they choose to not take that option.

The Star’s overseas remedies for fiscal struggles

FEC and CTFE are already in active discussions with potential new casino operators, according to The Australian Financial Review (AFR), including Crown Resorts and SkyCity.

Finally, they have also struck an in-principle deal to refinance Queen’s Wharf’s $1.4bn debt which is due in December this year. Bally’s and the Mathieson family’s Investment Holdings have reportedly given unconditional consent to the agreement.

The Star has been experiencing financial struggles for some time now. For example, in its 2023/24 report the company reported losses totalling $1.7bn. It has also faced regulatory turbulence with its shares suspended from the ASX in early 2025.

It was only in April that the firm secured a lifeline with Bally’s Corporation, which injected $300m into the company with the intention of revitalising its business.

Soo Kim, Chairman of Bally’s, said at the time: “This transaction provides Bally’s the opportunity to infuse The Star with what it needs to regain its position as Australia’s preeminent gaming destination.

“And it allows The Star shareholders to share in what we confidently believe will be a brighter future together.”