.svg)
The Queensland state government is set to approve the sale of The Star Entertainment Group’s Queen’s Wharf casino property in Brisbane to its Chinese partners despite the latter’s executives misleading the state gambling regulator.
The sale of the property, a key element in alleviating Star Entertainment’s financial crisis, could still be affected by allegations in the long-delayed release late Thursday (March 27) of a probity report into Hong Kong giant Chow Tai Fook Enterprises.
Adding to the uncertainty facing Star, US-based casino operator Bally’s Corp on Friday made a bid to take a controlling interest in Star Entertainment, including Queen’s Wharf, for at least A$250m ($157m). The offer is backed by billionaire Bruce Mathieson, Star’s leading shareholder.
The redacted report, whose publication Chow Tai Fook attempted to block in the courts, states that company executives gave “incorrect, incomplete and/or inconsistent information” to the Office of Liquor and Gaming Regulation (OLGR) regarding links to jailed Macau junket boss Alvin Chau.
Queensland’s previous Labor government dismissed these and other concerns in the report, and the new conservative government appears set to do the same, despite demanding while in opposition that the report be released and acted on.
Attorney-General Deb Frecklington said on Friday that the government is “satisfied that there is proper oversight of the current casino licence arrangement at Queen’s Wharf”, the Australian Financial Review reported.
However, Chow Tai Fook and Chinese partner Far East Consortium still need the approval of the OLGR for the sale to proceed, and for Star to reject the Bally’s offer.
Star Entertainment has extended a deadline to tomorrow (April 1) for the Chinese deal, a package that includes a A$750m refinancing led by Australian property development fund Salter Brothers and a bridge loan of A$250m from US-based King Street Capital Management.
Just hours before the release of the report, the Queensland government deferred the suspension of Star casino operations in the state by another six months until September as a reward for remediation progress.
Meanwhile, the New South Wales state gambling regulator on Friday extended the suspension of Star Entertainment’s Sydney casino licence until the end of September.
