Billionaire Pub Owner Mathieson Backs Bally's Takeover of the Star
Bally's Takeover of Star Entertainment Group Progresses Amid Regulatory Scrutiny
The takeover bid by Bally's Corporation for Star Entertainment Group is moving forward, but faces regulatory challenges in New South Wales. The New South Wales Independent Casino Commission (NICC) is demanding "clear and convincing" evidence that Bally's is suitable to hold a casino license, amid ongoing concerns about Star's financial stability and leadership.
The regulatory scrutiny follows an AU$400 million penalty under review for Star's past anti-money laundering breaches, which complicates the takeover approval process. As of August 2025, no current competing bids have emerged publicly.
Bruce Mathieson, Star Entertainment Group's largest shareholder, has pledged his support for Bally's proposal over competing offers. Mathieson, a well-known figure in the pub and poker machine industry, holds a 10% stake in Star Entertainment Group. He has already received regulatory approval to increase his stake to 20%.
The exclusivity agreement preventing Star Entertainment Group from negotiating with other parties remains in effect until March 25. If the deal moves forward, Mathieson will allegedly invest an extra AU$50 million (US$31.5 million) to bolster Star's finances.
Bally's bid stands at AU$250 million (US$158 million) for a 50.1% controlling stake. Star Entertainment Group has remained tight-lipped about Bally's offer since confirming its receipt two weeks ago.
Bally's chairman Soo Kim remains confident in his company's ability to revitalize Star's assets. Kim claims that Bally's proposal is not subject to due diligence or consents. Kim stated that their initial plan was "the best way to preserve shareholder value."
Star Entertainment Group is actively restructuring, including selling stakes in joint ventures and casino assets, such as The Star Brisbane and The Star Gold Coast, to strengthen its financial position. These sales have Bally's and Mathieson's backing and are pending regulatory approvals.
Bally's itself is expanding globally and has recently completed a merger and announced a major deal with Intralot S.A. to grow its gaming technology footprint. This highlights Bally's strategic interest and financial capacity in gaming markets, including Australia.
In summary, Bally's bid for Star Entertainment Group is underway but delayed by regulatory concerns in New South Wales. No current competing bids have emerged publicly. Bruce Mathieson has made a significant financial contribution alongside Bally's in a AU$300 million lifeline that underpins the takeover and restructuring efforts.
The takeover by Bally's Corporation includes plans to revitalize Star Entertainment Group's assets, which could potentially include poker rooms within their casinos. Bally's Chairman Soo Kim remains optimistic about their proposal, emphasizing its strategic interest and financial capacity in gaming markets, such as Australia.
