Star Entertainment has signed a A$300 million ($180 million) funding deal with Bally’s Corp., potentially handing control of the cash-strapped Australian gambling company to the U.S. casino operator.
Under the deal, Bally’s will purchase a combination of convertible notes and subordinated debt, delivered in multiple stages, according to an exchange filing. The notes would eventually give Bally’s a controlling stake of around 56.7% in Star on a fully diluted basis.
Star said it is also in discussions with its largest shareholder, Investment Holdings (controlled by the family of Australian billionaire Bruce Mathieson) for a possible subscription of up to A$100 million to the funding package. “If this occurs, the investment from Bally’s will be reduced to A$200 million,” it said.
Bally’s is expected to inject an initial A$100 million by tomorrow, providing crucial support to keep the struggling Sydney-based group afloat. The remaining funds will follow, subject to regulatory and shareholder approvals, expected in late June.
Star has been racing to raise fresh capital amid slumping gaming revenues. In February, the company said it is exploring various options to increase its liquidity, including the sale of its stake in the Brisbane property, as it has limited capacity to raise A$150 million in subordinated debt. Its troubles began in 2022 after regulators declared the company unfit to operate its casinos following media reports of money laundering at its properties.
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