Australian casino operator Star Entertainment, which remains under scrutiny for past regulatory failures, has agreed to sell its 50 percent stake in the Sheraton Grand Mirage Resort Gold Coast for AU$192 million ($128 million).
Star wanted to offload the property due to a rash of legal problems and a possible tax hike that could cost it up to $1.11 billion, reported Asia Gaming Brief. One of Australia’s biggest casino operators along with Crown Resorts, Star posted a $1.26 billion loss for the first half of the current financial year. In 2022, regulators in New South Wales (NSW) and Queensland levied a fine of AU$100 million (US$66.7 million) against Star for failing to adhere to the states’ anti-money laundering and terrorism financing laws.
The Sheraton Grand Mirage is a five-star beachfront resort featuring 295 guestrooms, five restaurants, several outdoor pools and meeting space.
As reported by the Australian Financial Review, the buyers, the Karedis and Laundy families, already own several beachfront hotels including the Manly Pacific and Crown Plaza in Terrigal in NSW. Before they can take control of the Grand Mirage, they must be approved for a transferred liquor license by Queensland regulators.
Along with the legal fees, Star faces a considerable tax hike. According to the Guardian newspaper, NSW officials have proposed increasing the state’s tax on slot win, almost doubling it from 32 percent to 60 percent.
Star CEO Robbie Cooke, who replaced Matt Bekier after the money laundering crisis, said such a tax hike could be disastrous for Star and the people who work at its resorts.
“If implemented as originally proposed, the additional duty would significantly challenge the economic viability of the Sydney business and put the jobs of up to 4,000 hard-working Sydney employees in jeopardy,” said Cooke. “We will continue to engage with the new NSW government to guarantee the jobs of our team members while working hard to implement the significant reforms required to restore the Star to suitability and to ensure it remains a valuable contributor to the NSW economy.”
Meanwhile, a second deal to sell Star’s Treasury Casino and Hotel in Brisbane has fallen through.
