Crown Resorts Eyes Entry into Queensland with Potential Queens Wharf Acquisition

Background of the Queens Wharf Sale

The Star Entertainment Group is in the process of selling its share in the Queens Wharf casino. This move opens the door for other companies to take over, with Crown Resorts showing strong interest as a prospective buyer. Acquiring this property would mark Crown Resorts’ initial venture into Queensland’s gaming market.

Distribution of Ownership and Potential Buyers

Currently, The Star owns half of the Queens Wharf casino, while Chow Tai Fook Enterprises and Far East Consortium each hold a quarter of the ownership. The Star intends to sell its 50% stake, potentially transferring control to a new operator. Among possible candidates to acquire these interests are Crown Resorts, SkyCity, and Delaware North.

Crown, backed by Blackstone, appears to be a front-runner in this acquisition race due to its strong financial position and strategic interest in expanding to Queensland.

Challenges in Completing the Sale

The sale process has faced complications stemming from financial and operational difficulties encountered by The Star. These issues have raised concerns about The Star’s capacity to manage the casino hotel operations through the end of the year.

While the deadline for finalizing the sale has recently been extended, The Star has agreed to compensate its partners with AUD 36.5 million if it fails to complete the deal within the new timeframe.

The Star’s Regulatory and Financial Issues

In recent years, The Star has encountered various regulatory challenges that have cast doubt on its eligibility to maintain its casino license. These difficulties have led to decreased investor confidence, impacting the company’s financial health and market performance. Despite these setbacks, The Star is exploring potential recovery paths, including a proposed transaction with Bally’s.