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Casino regulator fooked again

Star Entertainment needs the Queensland government to hold its nose.

Ivor Ries |
Casino regulator fooked again
"Star Entertainment teeters on the edge of the abyss and, as it loses money hand over fist, is unable to contribute any more capital to the Queen's Wharf project, which has cost $3.6 billion to date." Photo: Russell Freeman.

Casino regulators the world over are awaiting with bated breath the exotic justifications of David Crisafulli's Queensland government for authorising 50 per cent ownership of the Queen's Wharf casino by a company with a long historical association with criminality and money laundering. 

Shareholders and creditors of Star Entertainment will be watching closely, too, as Star's plan to avoid almost certain bankruptcy includes the sale of half of its remaining stake in the Brisbane casino to that very interesting company, Hong Kong-based Chow Tai Fook Enterprises (CTFE).

In most developed world jurisdictions, CTFE and some of its directors would not be allowed to own 10 percent of a casino licence, let alone 50 per cent, due to the company's past association with a major and recently-convicted criminal. Yet Star's turnaround plan is based significantly on the assumption that Crisafulli will give CTFE his good housekeeping seal of approval. Justifying said approval will involve considerable mental gymnastics and a heavy duty spin cycle.