Bally’s makes $158 million bid for troubled Australian operator Star Entertainment

U.S. casino operator Bally’s Corporation has made a surprise AU$250 million ($158 million) bid to acquire Australia’s Star Entertainment Group, offering a fresh alternative to Star’s previously announced sell-off of its Brisbane stake to Hong Kong partners.  

Bally’s proposal, outlined in a letter to Star’s board, seeks to recapitalize the struggling casino operator while retaining its assets in Brisbane, Sydney, and the Gold Coast. The bid challenges Star’s agreement to sell its 50% stake in The Star Brisbane to Chow Tai Fook Enterprises and Far East Consortium, a deal that was confirmed last week.  

Bally’s last-minute offer proposes dividing Star into two distinct entities. One entity would be dedicated to Brisbane-focused operations, allowing for a more specialized approach to that market. The other entity would manage the Gold Coast and Sydney properties, ensuring focused oversight and strategic direction for these key locations.

Bally’s emphasized keeping Star’s assets intact, arguing that a breakup would weaken the business. Bally’s Chairman Soo Kim said: "Our strategy for Star is built on the simple premise that keeping in place Star’s current businesses, assets, and platforms will provide a stronger and more successful business over time."  

The company highlighted its experience in reviving distressed casino assets, offering operational expertise and financial backing to return Star to profitability and long-term sustainability.  

Bally’s proposal includes a 50.1% controlling stake in Star, secured through a AU$250 million injection via convertible notes. This investment would grant Bally’s a majority position in the company. Additionally, Bally’s has confirmed a fully funded deal, with access to $800 million (AU$1.27 billion) in cash and credit, ensuring the transaction is not subject to financing contingencies.  

Furthermore, Bally’s has expressed openness to increasing its stake based on Star’s liquidity and capital needs. The company has also signaled flexibility in structuring the deal, aiming to maximize value for regulators, creditors, shareholders, and employees.

"We believe that our proposal offers Star and its stakeholders far greater value and operational flexibility, as well as the upside from retaining Star’s current projects and other assets," Kim added.  

Star Entertainment has been facing severe financial pressure, recently securing AU$35 million ($22 million) from its Hong Kong partners as part of its Brisbane sell-off. The company is also working to refinance over AU$400 million ($252 million) in debt after being on the brink of insolvency prior to last week’s deal.  

Bally’s, headquartered in Rhode Island, U.S., operates 19 casinos across 11 U.S. states, a horse racetrack, and holds online sports betting licenses in 13 North American jurisdictions. The company has also expanded into the UK (Aspers Casino, Newcastle) and Spain, while investing in lottery services giant Intralot SA.  

In addition to ongoing developments in Chicago, Bally’s holds land rights in Las Vegas at the former Tropicana site, positioning itself as a major global player in the gaming sector.  

Kim reaffirmed Bally’s commitment to turning around struggling casino businesses: "Our team has successfully improved more than 20 individual property acquisitions over 15 years in a variety of challenging circumstances, across the entire spectrum of gaming regulatory environments and market conditions."