Bally’s to Acquire Controlling Stake in Star Entertainment Through $180 Million Rescue Deal
Australia’s embattled Star Entertainment Group has secured a significant financial lifeline through a deal with U.S. gaming company Bally’s Corporation, in a move that could shift majority control of the company into American hands.
A$300 Million Package to Rescue Star
The agreement will see Bally’s inject A$300 million (approximately $180 million USD) into Star through a structured purchase of convertible notes and subordinated debt, according to Star’s filing with the Australian Stock Exchange. This capital will be delivered in phases and, once converted, will grant Bally’s a controlling stake of roughly 56.7% on a fully diluted basis.
This deal represents a strategic pivot for the struggling Sydney-based operator, which has been seeking ways to shore up its finances after a turbulent two years marked by regulatory scrutiny and declining revenues.
Support from Existing Shareholders in Play
Star is also negotiating with its largest shareholder, Investment Holdings, which is controlled by the family of Australian billionaire Bruce Mathieson, for a potential additional subscription of up to A$100 million to the funding deal.
“If this occurs, the investment from Bally’s will be reduced to A$200 million,” Star said in its announcement.
This would enable the company to maintain a more balanced ownership structure, though Bally’s would still likely retain a significant position of influence.
Immediate Capital Infusion Starts Now
Bally’s is set to inject an initial A$100 million by tomorrow, offering immediate relief to Star’s tightening liquidity situation. The remainder of the funds will be released pending regulatory and shareholder approvals, which are expected to be finalized by late June.
This fresh injection of capital is critical for Star, which has been navigating severe headwinds in the form of regulatory challenges and weakening financial performance.
Fallout from 2022 Still Reverberating
Star Entertainment’s downward spiral began in 2022, when multiple investigations concluded that the company was unfit to hold casino licenses due to failings related to anti-money laundering compliance and governance lapses. The revelations followed damning media reports that exposed problematic practices across its properties.
In February 2025, the company disclosed that it was exploring options to boost liquidity, citing its limited ability to raise A$150 million in subordinated debt. Among the proposals under consideration was a potential sale of its stake in a Brisbane-based property.
What This Means for the Gambling Industry
The Bally’s deal marks one of the most significant cross-border interventions in the Australian gambling sector and underscores the challenges local operators face in restoring both trust and solvency.
With regulatory oversight still looming and operational restructuring underway, Bally’s entry could bring not just capital but also corporate restructuring expertise from the U.S. gaming industry.
As the situation develops and approvals are sought, Star Entertainment’s future will be closely watched by investors, regulators, and competitors alike.
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