Bally's Corporation Successfully Saves Star Entertainment from Imminent Bankruptcy
In a significant development, Bally's Corporation has intervened in the financial crisis facing Star Entertainment, offering a AU$300 million bailout package. This intervention has marked a significant shift in the ownership status of Star Entertainment, with Bally’s and Investment Holdings providing a combined AU$133 million in funding and securing a combined 57% ownership stake in the company [2][4][5].
The bailout package, overwhelmingly approved by over 99% of shareholders, effectively gives Bally’s majority control of the company. In a move that reflects this new phase in ownership and management, Bally's Chair, Soo Kim, has publicly committed to turning Star Entertainment's fortunes around [2][4][5].
In conjunction with this bailout, a previously planned deal for Star Entertainment to sell its 50% stake in the Queen's Wharf Brisbane project to Hong Kong partners Chow Tai Fook Enterprises and Far East Consortium was terminated as of late June 2025. This termination ended the earlier agreement for those partners to acquire Star’s stake and associated debt, signalling a shift away from that divestment strategy [1][2].
Star Entertainment has also seen an improvement in its liquidity position. The company received AU$58 million in proceeds from the sale of The Star Sydney Event Centre, which was held in escrow, further bolstering its financial position alongside the bailout funds from Bally’s and Investment Holdings [2][4].
Despite these positive developments, Star Entertainment is expected to receive a significant fine from the financial crimes watchdog due to past anti-money laundering transgressions. It's unclear whether the change of ownership will impact ongoing disciplinary actions against Star by regulators in New South Wales and Queensland [6].
The deal between Star Entertainment and Bally's Corp puts an end to a turbulent period in Star's history, during which it faced penalties from regulators for anti-money laundering (AML) failures. Some analysts have expressed concerns about buyer risk in the deal and the potential need for greater capital investment in the future [7].
Bruce Mathieson, a pub and slots mogul, is committing AU$100 million to the rescue package for Star Entertainment. The original bailout offer from Bally's was for AU$300 million, but it was reduced to AU$200 million due to a AU$100 million contribution from Star's top shareholder, Bruce Mathieson [3].
The deal structure between Star Entertainment and Bally's Corp was announced via an April 8 ASX filing. It's unclear whether the deal to buy Star will include its 50% stake in the Queen's Wharf precinct in Brisbane [8]. The intervention by Bally's Corp may save thousands of jobs at Star Entertainment, but it's unlikely to save those of the current executive management [9].
Bally's CEO Robeson Reeves has expressed interest in keeping the entire Star package together rather than stripping it apart. Kim believes that Star's assets have been "severely undermanaged" but will start making money again with time. The deal marks the end of the most turbulent period in Star Entertainment's history and may signal a brighter future for the company [2][4][5].
- Bruce Mathieson, a pub and slots mogul, has pledged AU$100 million towards Star Entertainment's bailout package, which was originally offered by Bally's Corp for AU$300 million but was later reduced to AU$200 million due to Mathieson's contribution.
- In a move that could potentially save thousands of jobs at Star Entertainment, Bally's Corp, with the collaboration of Soo Kim as Chair, has acquired a significant stake in Star Entertainment following the approval of a AU$300 million bailout package.
- The sports division of Bally's Corp, known as Star Entertainment, is expected to undergo rehabilitation under the guidance of Soo Kim, with the aim of improving the company's financial status and overall performance in the sports industry.
