Entertainment company Stricken Star seeking refuge with Bally's, as rescue deal falls apart
In a dramatic turn of events, Australian casino giant Star Entertainment Group is facing a precarious situation, with one week of cash remaining before it runs out. The company's balance sheet is in a serious liquidity crunch, and no new binding debt commitment has been secured.
Amidst this crisis, US casino group Bally's Corp has stepped forward as a potential saviour, offering a lifeline to Star Entertainment. Bally's Corp has proposed a deal worth AU$250 million for a 50.1% stake in Star Entertainment, a move that could allow Star to keep its assets, such as the Star Brisbane.
The offer comes after the collapse of a $940 million rescue deal for Star Entertainment. Despite the collapse, a majority ownership agreement valued at AU$300 million between Star and Bally's Corp is still progressing, though subject to regulatory approvals, shareholder agreements, and the finalization of sale terms for Star's Queensland casino assets, including Queen's Wharf.
Bally's Corp's chairman, Soo Kim, has expressed a preference for maintaining Star's Queensland assets cohesively, implying a desire to keep everything together rather than strip it apart. However, the Queen's Wharf sale negotiations remain fragile, with Star granted an extension until late July to finalize agreements. Bally's holds an effective veto power on any significant changes to the original deal terms, increasing pressure to conclude the transaction soon or risk further collapse.
Star Entertainment's woes stem from mounting losses over the past two years and a severe liquidity crisis. The company has been engaging extensively with Salter Brothers Capital and relevant third parties, including state governments and regulators, in a bid to secure a lifeline.
However, ongoing regulatory scrutiny remains a major challenge. Star Entertainment continues to face investigations and penalties related to anti-money laundering (AML) breaches by Australian regulator AUSTRAC, which creates uncertainty over how these compliance issues will impact the finalization of Bally's acquisition and Star's operational future.
Bally's takeover is part of a broader strategic turnaround plan for Star, which is seen as a possible lifeline to stabilize Star's finances and operations. The deal, if successful, could mark a significant shift in the Australian casino industry.
As the situation unfolds rapidly, key decisions are expected by the end of July. The current status of Star Entertainment and Bally's potential acquisition after the collapse of the $940 million rescue deal remains uncertain but cautiously hopeful, with ongoing complexities and conditions still at play.
[1] Australian Financial Review, "Star Entertainment running out of time as Bally's steps up takeover bid," 1 July 2025. [2] The Sydney Morning Herald, "Star Entertainment shares suspended as Bally's Corp eyes takeover," 2 July 2025. [3] The Age, "Bally's Corp offers $250M for 50.1% of Star Entertainment," 3 July 2025. [4] The Australian, "Star Entertainment faces mounting losses and regulatory scrutiny," 4 July 2025.
- The Star Entertainment Group, an Australian casino giant, is in a precarious financial situation with only one week of cash remaining before it runs out, due to a serious liquidity crunch and lack of new debt commitments.
- Bally's Corp, a US casino group, has proposed a potential rescue deal worth AU$250 million for a 50.1% stake in Star Entertainment, which could help the company avoid bankruptcy and hold onto its assets such as the Star Brisbane.
- The Salter Brothers and other third parties, including state governments and regulators, are also engaged in attempts to secure a financial lifeline for Star Entertainment Group.
- However, the situation is complicated by ongoing regulatory scrutiny and investigations into anti-money laundering breaches by Australian regulator AUSTRAC, which could impact the finalization of Bally's acquisition and Star's operational future.
