ALL BETS ARE OFF
Premier warned pursuit of second casino risks $9b Coast investment
GAMING giant The Star has threatened to tear up its partnership with the State Government if plans for a second casino on the Coast continue.
Star Queensland managing director Geoff Hogg fired off an explosive letter to Premier Annastacia Palaszczuk and all of her Cabinet ministers warning the pursuit of a second casino was putting at risk The Star’s $9 billion investment.
He urged the Government to “assess the costs of discontinuing a true industry partnership between the Palaszczuk Government and The Star that will leverage state-wide benefits”.
The move has been described as a “big power play’’ and effectively puts “a gun to the head of the Government’’.
GAMING giant The Star is threatening to tear up its partnership with the State Government, putting at risk $9 billion in investment, if it green lights a second casino on the Coast.
In an explosive letter to Premier Annastacia Palaszczuk and all of her Cabinet ministers, Star Queensland managing director Geoff Hogg urged the Government to “assess the costs of discontinuing a true industry partnership between the Palaszczuk Government and The Star that will leverage state-wide benefits”.
He said Macquarie published research showed a second Coast casino would have difficulty recouping an investment of more than $400 million and a ReachTel poll confirmed the majority of residents were overwhelmingly opposed to it.
Given “this new independent evidence” and Star’s com- mitment to work with the Government to leverage $9 billion of resort infrastructure in southeast Queensland “we again invite and encourage you to fully embrace the partnership we seek with your government”.
Mr Hogg wrote that he had received no response from the Government since writing on the same issue to ministers earlier this month.
An industry source said: “It’s a big power play. It’s a gun to the head of the Government. This is quite ridiculous. They have a contract to develop Queens Wharf (in Brisbane).”
Speaking to the Bulletin, a Star spokesman re-emphasised the casino’s $2 billion, seven-tower Broadbeach island masterplan was dependent on no new competitors.
A slim majority of city councillors voted at a full council meeting on Tuesday for the State Government to progress with a new gaming resort despite a new ReachTel poll revealing 68 per cent of Gold Coasters were opposed to another casino or more pokies as part of any development.
“The results of this research are consistent with previous polling that shows the Gold Coast community is overwhelmingly opposed to a second casino,” a Star Entertainment Group spokesman said. “We also remain consistent on our position that each stage of the (Gold Coast) masterplan will be dependent on the market and competitor landscape at the time.”
The Star’s third tower to house a Dorsett hotel is under construction. But the masterplan, green-lighted by State Government, envisages four more towers at the site with one going up every two years.
“The expanded masterplan would create the biggest tourism accommodation complex in Australia,” a Star spokesman added.
THE Star is rolling the dice, hoping the Palaszczuk Government will be spooked and not proceed with a second casino on the Gold Coast.
In a move which no doubt shocked government insiders, as revealed in the Bulletin today, Star managing director Queensland Geoff Hogg has written to Premier Annastacia Palaszczuk and all her ministers asking her government to reconsider the plan for a global tourism hub.
The Government is poised to go to market for a potential $2 billion mega resort. Cabinet will meet to discuss this before Christmas.
Mr Hogg asked the government to consider latest research by Macquarie – it suggests a second casino would have difficulty recouping any investment more than $400 million. He referred to a ReachTel poll by Clubs Queensland showing a majority of residents surveyed opposed a global tourism hub with pokies.
It also included a warning.
Mr Hogg wrote that the Government must consider the costs of “discontinuing a true industry partnership between the Palaszczuk Government and The Star that will leverage state-wide benefits”.
Star estimate that partnership is worth $9 billion of tourism infrastructure in southeast Queensland including its masterplan to revamp its Broadbeach site.
From George St at the tower of power in Brisbane, the view is slightly different.
The Government went to the market and the Destination Brisbane Consortium — a joint venture between The Star Entertainment Group, Hong Kongbased Chow Tai Fook Enterprises and the Far East Consortium — will deliver by 2022 a $3.6 billion project.
Covering more than 26ha across land and the Brisbane River, Queens Wharf will essentially provide a tourism oasis for the city in the middle of its heritage area linking with Southbank.
This is what drives the Gold Coast global tourism hub. By promoting the project, the Government argues it has already forced The Star to lift its game and improve its Broadbeach holding.
The other argument being used by the Government is why allow The Star to continue having a free monopoly on the Coast casino market. What does the punter who pays taxes get back?
A second casino-resort could deliver a windfall of $350 million in public facilities.
The package drafted by government planning bureaucrats could ultimately include a ferry terminal, a boutique stadium, an ampitheatre and a much-needed upgraded convention centre to stop conferences being poached by Brisbane.
The Star was among the winners for Queens Wharf. The entertainment group could put up its hand for the Coast global tourism hub.
The Glitter Strip’s big end of town — just ask our business and civic leaders — strongly supports the Government going to market.
This is the ultimate test of nerve for the Premier. She and her Government can be made to look indecisive.
The only play is to go to market, and do it now. Reassure The Star by inviting them to the table. The winner will be the Gold Coast.