New South Wales<\/a> (NSW) and other states over allegations it failed to comply with anti-money laundering and other policies.<\/p>\n<\/div>\nNSW already concluded its inquiry, providing an initial assessment that Star is not worthy of holding a casino license. However, Queensland only recently began its scrutiny, and its finding may not be revealed until early next year.<\/p>\n
Unforeseen issues during the complex construction, an unexpectedly high level of rain, and COVID-19 have resulted in delays in the project, which first began to appear on the horizon in 2019. It’s not surprising that an ambitious development such as this would require more time, as there are always factors that result in delays in planned time lines.<\/p>\n
Just like time lines often change in big construction projects, so do costs. Star, in 2018, put a budget of AU$2.6 billion (US$1.82 billion) on the resort. However, according to the company’s announcement, it will now have to spend at least another 10% more.<\/strong><\/p>\nThe increase is the result of supply chain issues, higher-than-expected construction costs, and difficulty finding adequate labor. Just like with construction time lines, big projects almost never stay within their initial budgets.<\/p>\n
In addition, Multiplex has delivered to Star invoices for additional costs that Star didn’t originally factor into the project. As a result, it and Multiplex are butting heads over who’s responsible for what.<\/p>\n
Star’s Financial Rebound<\/h2>\n Star isn’t expressing much concern over the rising costs. It’s beginning to see improved revenue, which can help offset the difference. From July 2021 to June 2022, it recorded normalized revenue of AU$1.53 billion (US$1.07 billion). While this is AU$30 million (US$21 million) less than a year earlier, the figure increased as the 12-month period advanced.<\/p>\n
For the second quarter of this year, Star reported an increase in domestic revenue of 11% compared to the same quarter in 2019 before the arrival of COVID-19. Gaming machine revenue and non-gaming revenue jumped by 28% and 26%, respectively. Table gaming revenue remained flat, but is improving.<\/strong><\/p>\nFortunately for it, Star isn’t responsible for 100% of the costs. The Queen’s Wharf project is a joint venture that includes Far East Consortium and Chow Tai Fook. The two Hong Kong companies each own 25% of the development.<\/p>\n
That partnership could eventually prove to be trouble for Star, however. Chow Tai Fook has ties to Henry Cheng, who controls 10% of SJM Holdings<\/a>. He was blacklisted from working with Crown Resorts over alleged connections to organized crime several years ago.<\/p>\n","protected":false},"excerpt":{"rendered":"Australia’s ambitious Queen’s Wharf project in Brisbane is counting on Star Entertainment to give it a casino resort to improve its chances of success. The casino operator is currently developing the property, but is running into trouble with both time and money. This past February, Star indicated that it expected to open the new resort […]<\/p>\n","protected":false},"author":64,"featured_media":223770,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,33810],"tags":[81985,13363,81897],"acf":[],"yoast_head":"\n
Star Entertainment Needs More Time, Money To Complete Queen's Wharf Casino - Casino.org<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n