The Star Entertainment Group is one step closer towards its goal of returning to financial stability, as a strategic investment from Bally’s Corporation and Investment Holdings into the operator has received the regulatory nod.
With approvals from the New South Wales Independent Casino Commission (NICC) and the Queensland Office of Liquor and Gaming Regulation (OLGR), Bally’s and Investment Holdings’ AUD $300m investment (approximately USD $194m) in the Australian casino operator has been converted into equity, making Bally’s a substantial shareholder.
In addition, nominee directors will be appointed to The Star’s board of directors. Both of these actions are expected to occur in the next few days, with an update set to be provided on 25 November at the operator’s 2025 annual general meeting.
“We are very pleased to have received all regulatory approvals necessary to complete the Strategic Investment,” stated Anne Ward, Chair of The Star.
“This is a critical step in The Star’s progress towards a return to suitability and financial stability. We look forward to working with each of Bally’s and Investment Holdings to facilitate an orderly transition and to provide a pathway for a successful future for The Star.”
Bally’s and Investment Holdings’ strategic investment in The Star has been in the works since April earlier this year, when the parties entered into a binding term sheet. Shareholders of the Australian casino operator approved the deal back in June.
Licence remains suspended
Philip Crawford, Chief Commissioner of the NICC, noted that a plan to improve The Star’s financial performance has been submitted by Bally’s. As a condition of the approval, Bally’s will be required to report back regularly on its progress.
The NICC added that its decision “does not affect the current status of The Star’s licence”, which remains suspended, with NICC-appointed manager Nick Weeks continuing to have casino operations oversight and the operator still subject to “rigorous remediation milestones and reporting conditions relating to its AML/CTF, gambling harm, governance and culture uplift programs”.
Crawford said: “Both the close associate approvals and the major change approval for The Star will allow Bally’s and Investment Holdings to move forward with their financial and operational commitments in respect of The Star which we anticipate will be happening very soon.
“Both Bally’s and Investment Holdings have assured the NICC they will continue the essential remediation work required at The Star so that it can continue to remedy the serious concerns raised in the two Bell inquiries.”
