The embattled casino operator Star Entertainment is weighing up a bid from U.S. gaming giant Bally’s, which would provide a significant $250 million funding injection, in return for a controlling stake in the company.
Star has been in a difficult predicament in recent times, with increasing pressures exacerbating its troubling financial position.
Back in January, the firm was said to be heading toward administration with thousands of jobs on line, and just last week, a trading hold was applied which meant Star shares could not be bought or sold on the market.
This happened because Star Casino was unable to produce its half-yearly results to the Australian Securities Exchange (ASX).
A lifeline was announced last week with the news that a Far-East Consortium had agreed terms on a $53 million package for 50% of Star’s new Brisbane casino.
The filing was made on Friday to the Hong Kong Stock Exchange, which would see Star relinquish control of the Queen’s Wharf development. The buyers, made up of Far East Consortium International and Chow Tai Fook Enterprises, were the existing holders of the other 50% equity.
In return, Star would take on the two-thirds ownership that the Hong Kong parties held on the Gold Coast casino project.
Now, the wider vista could be altered with the emergence of Bally’s.
Star Entertainment is considering a last-minute recapitalization proposal from Bally’s that could potentially hand over control of the company to the US casino group https://t.co/30UB4BZ6g7
— Bloomberg (@business) March 10, 2025
Last-minute Bally’s offer
This morning, Star confirmed an uninvited offer from the American entity, worth around $250 million in capital, presenting an “alternative path” to the Hong Kong proposal.
“In short, we firmly believe that our approach… of new long-term capital plus operational track record will unlock the best alternative for Star and its shareholders,” said Bally’s in a letter sent to the stock exchange.
$250 million of capital is on the table in exchange for 50.1% of Star Casino’s shares.
What it means for Star’s executives is more time. They now have a window of opportunity to reach an outcome, with two proposals in play, but the threat of collapse still lingers.
Image credit: Via Midjourney
