Bally’s AU$300M Takeover Secures Future for Australian Casino Giant Star

Bally’s Corporation has agreed to acquire Star Entertainment Group in a landmark AU$300 million deal designed to rescue the Australian casino giant from imminent financial collapse. The transaction, approved by Star’s board and lenders over the weekend under Chair Anne Ward’s leadership, is pending final procedural steps. As of late Monday, April 7^th, documentation remained under review, with formal approvals by the lender committee still required.

The agreement is expected to be ratified within days and inject crucial liquidity into Star’s operations, stabilizing its operations and securing long-term viability. This acquisition marks a decisive intervention in Australia’s most high-profile corporate turnaround efforts.

A Structured Lifeline

Bally’s and Star’s principal shareholder, Bruce Mathieson, will jointly inject AU$300 million (AU$250 million from Bally’s, AU$50 million from Mathieson) to stabilize the Australian operator’s urgent liquidity shortfalls. The rescue package is provided in structured convertible notes requiring regulatory approval in New South Wales and Queensland. The deal replaces Star’s AU$940 million refinancing deal with Salter Brothers that collapsed last week.

Funding will occur in two tranches: AU$100 million by April 9^th, pending senior lending approval, and AU$200 million, subject to shareholder ratification and foreign investment reviews. The second tranche is extendable to October 7^th if delayed. Upon full deployment, Bally’s could convert its investment into a 56.7% controlling stake. The convertible notes carry a 9% annual interest rate, with Tranche 2 necessitating shareholder consent.

A Turnaround Path

Bally’s acquisition aims to end a turbulent period for Star Entertainment, characterized by regulatory scrutiny, mounting debt, and operational setbacks. Since assuming leadership in July 2024, CEO Steve McCann has grappled with financial instability intensified by cost overruns and the relatively new Queen’s Wharf development in Brisbane.

An AU$100 million loan acquired in September 2024 provided temporary relief but imposed restrictive terms, compounding financial pressures. Star also finalized the divestment of its 50% stake in Queens Wharf to Chow Tai Fook Enterprises and Far East Consortium, retaining casino operations for at least 12 months.

High Expectations

Bally’s Chairman Soo Kim, a veteran investor recognized for restructuring distressed gaming assets, has positioned the Star deal as an opportunity to replicate his success in revitalizing underperforming casinos. The transaction’s fate now hinges on approvals from Australian regulators and shareholders. It is facing intense scrutiny due to the potential of foreign ownership rules governing domestic gaming operations.