Bally's Corporation has announced plans to invest $300 million in The Star Entertainment Group, marking a significant step into the Australian gambling market.
Investment Agreement
The deal, announced in April 2025, gives Bally’s the option to take a controlling stake in The Star following the purchase of convertible notes and subordinated debt. The capital injection provides crucial funding for the Australian operator, which faces pressure from declining share prices and regulatory challenges.
Challenges Facing The Star Entertainment Group
The Star was once a dominant force in Australian gaming but has recently faced serious challenges. Regulatory investigations in New South Wales and Queensland discovered major compliance failures, leading to fines and license suspensions. In 2022, regulators deemed the company unfit to hold casino licenses amid reports of alleged money laundering.
Future of the Company and Strategic Changes
As part of the rescue package, Bally’s has already paid the first tranche of $100 million, which should keep The Star operational for approximately 15 months. Future payments will depend on regulatory approvals and a shareholder vote. Bally’s chairman Soo Kim will join The Star’s board, indicating a shift in focus towards domestic customers rather than international high rollers.
Bally's investment in The Star Entertainment Group represents a potential pathway for the company to navigate out of its crisis, offering an opportunity for strategic re-evaluation of its role in the Australian market.
