Gambling revenue down as Queen’s Wharf build cost nudges $4 billion

The Star Entertainment Group, which operates casinos in Sydney and Brisbane, has reported a decline in gambling revenue due to increased competition from other casinos in the region. Additionally, the cost of building its joint-venture mega project in the Brisbane CBD, known as Queen's Wharf, has also been a factor in the company's financial struggles.

According to a report by The Australian Financial Review, Star Entertainment Group's gambling revenue in Queensland fell 12% in the first half of 2020 compared to the same period the previous year. This decline was attributed to increased competition from other casinos in the region, such as the Lottoland Gold Coast and the SkyCity Gold Coast.

Furthermore, the cost of building Queen's Wharf has also been a significant factor in Star Entertainment Group's financial struggles. The project, which was originally estimated to cost $3 billion, has now ballooned to an estimated $4 billion due to delays and cost overruns. This has put pressure on the company's cash flow and profitability.

Despite these challenges, Star Entertainment Group remains committed to completing the Queen's Wharf project. The company has stated that it is working closely with its joint-venture partners and the Queensland government to address the cost overruns and ensure the project stays on track.