SHOCK TWIST IN CASINO ROW
GOVT, STAR TALKS BREAK DOWN
THE State Government has killed off talk of a global tourism hub on the Gold Coast, and will not sign off on a monopoly deal with The Star for its Broadbeach casino-resort.
In a stunning development in the Coast’s casino stakes, State Development Minister Kate Jones will announce on Saturday the government has ended talks with The Star “by mutual agreement”.
In September last year, The Star forced the government to play its hand after offering to upgrade the Gold Coast Convention and Exhibition Centre in exchange for “certainty” in the casino debate.
The Star wanted “exclusivity” to commit to the rest of its $2 billion Gold Coast masterplan, with up to $100 million to be allocated for the convention centre.
But sources suggest that during talks in the past two months the government could not agree to a monopoly licence, of up to 30 years, for The Star to operate the Glitter Strip’s only casino.
“Through the exclusive negotiation process for a Gold Coast global tourism hub we worked really hard to extract value from The Star, but the deal on the table did not stack up for taxpayers,” Ms Jones said.
“We were not able to reach consensus around the terms for long-term casino licence exclusivity.
“Global market conditions are clearly impacting investment at present and I can confirm that this government has no intention of reviving the market process for a new integrated resort – including a second casino – on the Gold Coast.”
Ms Jones said the Palaszczuk Government would continue to work with the council and local businesses to support tourism investment on the Coast.
Sources suggest a Gold Coast global tourism hub can be revived by a future government after the state election in October.
But Labor insiders believe taxpayers will be the losers in a monopoly deal and now is not the time to go to market for a new development given international tourists are unable to visit under pandemic restrictions. A government source said: “While the negotiations have concluded, the government has never walked away from a potential convention centre upgrade.”
The Star Entertainment Group chairman John O’Neill said the company and its partners had already committed $4.5 billion to invigorate tourism in southeast Queensland.
“Investments in Queen’s Wharf Brisbane alongside those on the Gold Coast where we’ve refurbished The Star Grand hotel, opened The Darling hotel and have the Dorsett hotel and apartments tower under construction, are proof of our commitment to creating world-class tourism and entertainment destinations that will bring more than a million additional visitors to Queensland every year,” he said.
“We have confidence in the future of tourism and, under the right conditions, will continue to invest through our $2 billion-plus Gold Coast masterplan that will help government deliver further economic benefits for Queensland including thousands of jobs.”