Bally's snags a lifeline for Star Entertainment: A $300 million rescue deal
Bally's presents $250 million bid for Star Entertainment Group
In a surprising turn of events, struggling Australian casino operator Star Entertainment has found a lifeline in U.S. gaming giant Bally's Corporation. Bally's has proposed a whopping $300 million (€260 million) for a staggering 56.7% majority stake in Star Entertainment - a deal worth almost $50 million more than initially speculated [1][3][4].
Last week, Star Entertainment sold its stake in Brisbane's Queen's Wharf for $53 million (€48.76 million) to Hong Kong investors Far East Consortium International and Chow Tai Fook Enterprises to stave off insolvency [1]. Star opened the new integrated resort despite financial difficulties in August 2024. However, the casino resort on Australia's Gold Coast has since been bought back from Hong Kong investors by Star Entertainment itself [1].
The potential takeover by Bally's has sparked much discussion on Australian TV [Video in English].
Star Entertainment's brush with the law
In recent years, serious money laundering lapses and fraud deficiencies have been uncovered at Star Entertainment [1][2], resulting in hefty fines. In 2022, the Queensland government fined Star Entertainment $100 million AUD (€61 million) among other penalties. The NSW gambling regulator also fined Star Entertainment $15 million AUD (€9 million) in 2024 for inadequate anti-money laundering measures. Ten former executives are under fire for links to organized crime and tolerating money laundering risks, with civil lawsuits mounting against them [1].
Star Entertainment's financial crisis deepens due to trading suspension
The trading suspension since last year has left Star Entertainment reeling financially. Trading in shares of The Star Entertainment Group was halted on August 28, 2024, and has not resumed since due to a missed deadline for filing annual financial results for 2024.
In a positive development, Star Entertainment has received a funding commitment of $300 million (€260 million) from investment firm King Street Capital Management and a refinancing option for debts of up to $940 million (€787.6 million) from an unnamed lender [1].
Omkar Joshi, Chief Investment Officer at Opal Capital Management, commented on the latest developments surrounding Star Entertainment:
With the revised deal, Star Entertainment seems poised to navigate its financial hurdles. Whether the rescue of the ailing gambling conglomerate will succeed remains to be seen.
[1] https://www.abc.net.au/news/2025-04-03/star-entertainment-ballys-deal-star-casino-resort-au/132714344**
[2] https://www.9news.com.au/national/star-entertainment-group-casino-guns-australia-star-casino-barangaroo-gold-coast-brisbane/3743918/
[3] https://www.finimize.com/aus/news/star-entertainment-ballys-corporation-to-negotiate-over-250-million-stake/
[4] https://www.afr.com/companies/casinos/ballys-to-invest-300m-in-star-entertainment-20250406-p5dz44
- What about the future of investing in the casino industry, especially with the deal between Bally's Corporation and Star Entertainment, worth $300 million, representing a 56.7% majority stake in Star Entertainment?
- In 2022, Star Entertainment was fined $100 million AUD by the Queensland government due to serious money laundering lapses and fraud deficiencies discovered.
- Omkar Joshi, Chief Investment Officer at Opal Capital Management, commented on the latest developments surrounding Star Entertainment, stating that the company has access to new liquidity, which is helpful in tackling cash flow issues.
- The potential takeover by Bally's has been sparked by discussions in the Australian finance and business sector, including banking-and-insurance, real-estate, and fintech industries.
- Star Entertainment's financial crisis deepened due to a trading suspension in the last year, leaving the company reeling financially.
- With their revised deal, Star Entertainment seems poised to navigate its financial hurdles, but whether the rescue of the ailing gambling conglomerate will succeed remains uncertain.
