Key points:
- Bally’s Corporation has proposed a AU$250m capital raise via convertible notes, granting it at least 50.1% ownership
- The Star’s Board is reviewing the offer, with no certainty it will proceed
- The proposal follows The Star’s AU$53m emergency funding deal for its Brisbane casino
The Star Entertainment Group has received an unsolicited, non-binding proposal from Bally’s Corporation, outlining a potential AU$250m (US$157m) capital injection in exchange for a controlling stake in the company.
Bally’s proposal includes issuing convertible notes subordinated to The Star’s existing senior lenders. If accepted, the notes would convert into at least 50.1% of The Star’s fully diluted ordinary shares.
Bally’s has indicated that it would underwrite the full amount but would support existing shareholders participating on a pro-rata basis. No further details on terms and conditions have been disclosed.
The Star’s Board has acknowledged the proposal and confirmed it will conduct a review, though there is no assurance that discussions will progress.
The offer comes shortly after The Star secured a AU$53m emergency funding deal on 7 March 2025, transferring control of its Brisbane casino to a Hong Kong-led investor group. That agreement followed financial difficulties driven by regulatory penalties, compliance costs and declining revenues.
Good to know: Bally’s Corporation, which owns and operates 19 casinos across 11 US states, has been expanding its global presence
In 2024, Bally’s acquired Aspers Casino in Newcastle, UK and holds gaming licences across multiple jurisdictions, including North America and Europe. The company has cited its operational expertise in restructuring underperforming assets as part of its rationale for pursuing The Star.
The Star, which still operates casinos in Sydney and the Gold Coast, has been under increased regulatory scrutiny. Its future financial position remains uncertain as it seeks stability following liquidity challenges and governance concerns.
The Star's share price currently sits at AU$0.11, down 31.45% in the last 5 days.
