No deal: plans for second Gold Coast Casino abandoned

Queensland’s state government has abandoned its plans for a second Gold Coast casino, citing “global market conditions” as a major barrier to construction.

However, a failure to reach agreement with the operator of The Star Gold Coast, Star Entertainment Group over a 30-year exclusivity deal is also a major stumbling block.

A second casino was part of the state government’s plans to build a Global Tourism Hub, a plan at odds with Star Entertainment Group’s Gold Coast Masterplan, which would have seen the company commit more than AU$2 billion in investment funds to the state. 

Minister of Innovation and Tourism Development, Kate Jones explained discussions of a Gold Coast monopoly with The Star had crumbled: “We worked really hard to extract value from The Star, but the deal on the table did not stack up for taxpayers.

“We were not able to reach consensus around the terms for long-term casino license exclusivity.”

A  Global Tourism Hub, including a second casino, is now removed from the government’s agenda as global market conditions continue to impact investment in the current COVID-19  circumstances.

The “government has no intention of reviving the market process for a new integrated resort – including a second casino – on the Gold Coast,” Jones added.

Star Entertainment Group has been proclaiming that the market isn’t big enough for a second casino operator and have long been protesting against the government’s plan for a Global Tourism Hub.

However, the group had promised to invest AU$2 billion into its own development if given exclusivity.

Last year, Star Entertainment Group also offered a AU$100 million re-development of the aging Gold Coast Convention and Exhibition Centre to make the deal more appealing.

Chairman of Star Entertainment Group, John O’Neill, said that even with the  failure to secure a monopoly, the company would probably continue with its Gold Coast Masterplan.

“We have confidence in the future of tourism and, under the right conditions, will continue to invest through our AU$2 billion-plus Gold Coast Masterplan that will help government deliver further significant economic benefits for Queensland including thousands of jobs,” he said.