Star Entertainment Accepts $300 Million Bailout from Bally’s
Star Entertainment Group has accepted a $300 million acquisition offer from US-based gaming giant Bally’s Corporation, a move aimed at preventing the collapse of the struggling casino operator.
LISTEN TO THIS ARTICLE:The decision follows the breakdown of a multi-million refinancing plan with Australian investment firm Salter Brothers, which included the proposed sale of Star’s 50 percent share in the Brisbane Queen’s Wharf development. Left without other viable options, Star was left to consider a single unsolicited bid from Bally’s.
Deal Expected to Be Signed Today
According to The Australian Financial Review, Star’s board has now agreed to transfer control of the company to the American casino group. Legal teams are currently preparing the necessary documentation, and a deal is expected to be signed as early as today, Monday, 7 April.
The proposed agreement consists of $250 million from Bally’s and an additional $50 million from Star’s largest shareholder, the well-known pub magnate Bruce Mathieson. Star is expected to receive part of the funding this week, which will provide much-needed liquidity as it struggles to meet short-term financial commitments.
Star’s financial problems became glaringly apparent after it was revealed on Wednesday that the Salter Brothers deal had fallen apart. At the time, the company reportedly had only enough cash to operate for another week.
Bally’s Corporation, which operates 19 casinos across the United States, sees potential in reviving Star. The company’s CEO stated that their extensive experience in rehabilitating underperforming casino properties would be instrumental in helping Star recover. Industry insiders said in March that Bally’s had successfully turned around 17 of its properties.
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Rapidly Dwindling Cash Reserves
This year has been especially challenging for Star, which entered a trading halt after failing to release its financial results for the first half of fiscal year 2025. In January, CEO Steve McCann revealed the company’s cash reserves had dwindled to $78 million by December 31, down from $185 million just three months prior.
In addition to putting its stake in the Brisbane project up for sale, Star has agreed to sell its event space in Sydney for $60 million, although that transaction has yet to be finalized.
Star’s casino license, suspended since 2022, remains in limbo. The New South Wales Independent Casino Commission has extended the suspension until September 30. In the meantime, Nick Weeks, the Commission’s appointed manager, will continue overseeing operations, and a reassessment of Star’s licensing suitability is expected in about six months.
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