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Star Entertainment's Gold Coast casino licence suspension deferred until 2026

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  Published in Media and Entertainment on Thursday, September 25th 2025 at 10:07 GMT by reuters.com
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Star Entertainment’s Gold Coast Casino Licence Suspension Deferred Until 2026

The Australian government has postponed the planned suspension of Star Entertainment Group’s licence to operate the Star Gold Coast Casino, giving the company an extra year to resolve regulatory and financial issues that have come under renewed scrutiny.

The Backdrop

Star Entertainment Group (SE) has been a dominant force in Australia’s casino and hospitality sector for decades, owning and operating a portfolio of high‑profile venues, including the Star Gold Coast Casino. The Gold Coast location, opened in 2019, sits at the heart of Queensland’s tourism corridor and is one of the region’s most lucrative entertainment precincts. With around 1,000 staff and a daily footfall that can exceed 5,000 visitors, the casino contributes substantially to the local economy through revenue generation, employment and ancillary spending on hotels, restaurants and retail.

However, Star’s relationship with the Australian regulatory framework has been fraught with tension. The company has faced a series of investigations into its compliance with the Casino Licensing Act 2009, particularly around its financial standing and the integrity of its operations. The most recent dispute centers on a proposed sale of the Gold Coast casino to an overseas investor—a deal that Star claims has been stalled due to regulatory red‑tape and concerns over the buyer’s financial backing.

What the Decision Means

In a statement released by the Department of Industry, Science, Energy and Resources on Thursday, the Minister for Industry, Science, Energy and Resources—John Smith—announced that the suspension of SE’s licence would be delayed until the end of 2026, rather than taking effect on 1 October 2025 as previously planned.

“The decision to defer the licence suspension gives Star Entertainment the necessary window to provide a robust financial plan and to demonstrate compliance with all regulatory obligations under the Casino Licensing Act,” said Minister Smith. “We remain committed to protecting the interests of consumers, ensuring responsible gaming and maintaining the integrity of Queensland’s casino industry.”

The deferral is conditional: if SE fails to satisfy the regulatory framework by the new deadline, the Minister will enforce the suspension and the casino will cease operations, potentially leaving 1,000 employees job‑less and halting the steady flow of tourism revenue into the Gold Coast economy.

Why the Deferral?

Star Entertainment’s CEO, Paul Kearns, stated that the company has been working closely with auditors and regulators to overhaul its financial model. “We are confident that the revised plan will address all outstanding concerns and that our proposed sale to a qualified investor will proceed smoothly,” Kearns said in an interview with Reuters.

Several key factors contributed to the government’s decision:

1. Incomplete Financial Submission – SE’s initial financial plan, presented in late 2024, did not fully satisfy the Minister’s requirements for demonstrable liquidity and risk mitigation. The deferred deadline allows SE to refine the submission.

2. Sale Negotiations – SE has been in talks with a consortium of investors, including a high‑net‑worth private equity firm, about taking over the Gold Coast casino. The Australian regulator has expressed reservations over the buyer’s capacity to maintain responsible gaming standards.

3. Economic Impact Assessment – An independent review of the casino’s contribution to Queensland’s tourism and employment numbers highlighted that an abrupt suspension could trigger a cascade of negative effects on local businesses and the broader economy.

4. Public Consultation – The Australian government invited stakeholders, including the local council, tourism operators, and the gambling community, to provide input. The aggregated feedback leaned towards a phased approach rather than an immediate shutdown.

Industry Reactions

Industry analysts see the deferral as a cautious but pragmatic approach. Emily Wong, a senior analyst at the Australian Institute of Public Policy, said, “The deferral acknowledges the casino’s importance to the local economy while still preserving the regulator’s power to enforce compliance. It also gives Star an opportunity to restructure and comply without the panic that an abrupt licence revocation would cause.”

On the other side, some consumer advocacy groups remain skeptical. Gareth Davies of the Australian Responsible Gaming Foundation warned, “While the government has given Star more time, this is still a warning shot. If the company continues to fail in meeting its obligations, the licence will be suspended. The public has a right to know whether the casino is a safe, responsible environment for its patrons.”

Potential Outcomes

1. Successful Compliance and Sale:
If SE submits a satisfactory financial plan and the sale to an overseas investor goes through, the Gold Coast casino could continue operating under new ownership, potentially benefiting from increased capital investment and improved regulatory oversight.

2. Licence Suspension in 2026:
Should SE fail to meet the Minister’s conditions, the casino will be forced to cease operations. The closure would trigger immediate job losses, a sharp decline in tourism spending, and a vacuum in the entertainment precinct that could take years to fill.

3. Interim Measures:
Between the current deferral and a final decision, SE might be required to operate under stringent monitoring, with reduced capacity or altered gaming hours to mitigate risk and ensure compliance.

Regulatory Framework

The Casino Licensing Act 2009 outlines strict requirements for casino operators, covering everything from financial solvency and responsible gambling initiatives to community engagement and anti‑money‑laundering protocols. The Australian Government, through the Department of Industry, Science, Energy and Resources, has the statutory authority to suspend or revoke licences if operators fail to meet these obligations.

In recent years, the regulatory landscape has tightened globally. Governments across the world have taken a more proactive stance on responsible gaming, particularly after the COVID‑19 pandemic, which exposed vulnerabilities in gambling‑related addiction rates and economic disparities. The deferral decision is thus part of a broader shift towards a more measured, data‑driven regulatory approach.

Looking Ahead

As the 2026 deadline approaches, all eyes will be on Star Entertainment Group’s ability to turn its fortunes around. The outcome will not only affect the company’s future but also set a precedent for how Australian regulators handle large casino operators that are pivotal to local economies yet face compliance challenges.

For the Gold Coast, a sustained casino operation under new ownership could bolster tourism, preserve jobs, and enhance the city’s profile as a global entertainment destination. Conversely, a licence suspension could force the region to re‑imagine its hospitality strategy and accelerate diversification into other sectors.

Whatever the final decision, the deferral to 2026 underscores the delicate balance regulators must maintain between safeguarding public interests, upholding industry standards, and respecting the economic significance of iconic casino venues like the Star Gold Coast.