Negotiations between the Queensland Government and resort operator The Star Entertainment Group (ASX: SGR) have concluded, with the pair deciding to ditch plans for a second casino on the Gold Coast.
Queensland State Development Minister Kate Jones says there was no demand for a second casino from taxpayers.
"Through the exclusive negotiation process for a Gold Coast Global Tourism Hub we worked really had to extract value from The Star, but the deal on the table did not stack up for taxpayers," says Jones.
"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."
The decision to conclude negotiations was made mutually by the two parties, but The Star will continue with its plans to deliver its $2.2 billion Gold Coast masterplan including the construction of 650 additional hotel rooms and 2,000 luxury apartments by 2038.
SGR chairman John O'Neill says the company has already committed around $4.5 billion to reinvigorate tourism in South East Queensland.
"Investments in Queen's Warf 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 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," says O'Neill.
"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 significant economic benefits for Queensland including thousands of jobs."
Business News Australia
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