Star Entertainment has found its lifeline, Bally’s Corporation. The U.S. casino giant is moving in with a AU$300 million rescue package that, if approved, would hand it control of one of Australia’s biggest names in land-based gambling.
This deal isn’t just a capital injection, it’s a potential reshaping of Australia’s casino landscape.
A Deal Born Out of Urgency
Star has been under fire for the past two years. Regulatory crackdowns, money laundering probes, and public trust issues have taken a toll, leaving the company struggling to stay afloat.
When its broader refinancing plans collapsed, Bally’s stepped in. The agreement on the table would see Bally’s immediately invest $100 million to keep operations running. That initial funding doesn’t require shareholder approval and will give Bally’s roughly 15% of Star’s shares, plus a chunk in subordinated debt.
But that’s only the beginning.
The remaining $200 million is tied to shareholder and regulatory approval. It could be paid out in two parts, and Bally’s has until October 7, 2025, to deliver the full amount if approvals are still pending.
Should everything go through, Bally’s would end up with 56.7% of Star’s shares, more than the 50.1% originally discussed. That majority stake would give it effective control of the company.
What This Means for the Australian Casino Scene
For players looking for Australian online casino alternatives, the land-based industry’s future suddenly looks less certain but also full of potential. Bally’s entry brings global expertise and a reputation for turning around struggling operations.
Star’s most iconic assets, The Star Sydney, Treasury Brisbane, and The Star Gold Coast, will remain central to its identity. Bally’s plan isn’t about breaking up the business. Instead, the goal is to stabilise it and set it up for long-term growth.
With 19 casinos under its belt in the U.S. and recent expansions into Europe and Asia, Bally’s isn’t new to the game. What makes this deal different is the timing and the pressure.
Star is a brand in crisis. What Bally’s is betting on is that with the right systems, controls, and leadership, it can turn that crisis into a comeback.
Enter: Bruce Mathieson
No conversation about Star Entertainment is complete without Bruce Mathieson, the company’s largest shareholder and a veteran of Australia’s gaming industry.
Mathieson might inject as much as $100 million of his own funds into the deal. If he does, Bally’s commitment would drop by that same amount.
But it’s not just about the money. Mathieson and Bally’s Chairman, Soo Kim, would both become observers on the board. That means oversight, influence, and collaboration, but no official voting rights.
Mathieson’s involvement could help reassure other shareholders and regulators that the deal isn’t a foreign takeover. It’s a joint effort to save a key Australian institution.
Tight Timeline, High Stakes
The first critical date is June 2025. That’s when Star’s shareholders are expected to vote on the full proposal. Assuming they give it the green light, the deal will then go to regulators. Australian authorities are likely to examine Bally’s financials, compliance record, and operational plans carefully, especially in the wake of Star’s past failures.
The structure of the transaction gives Bally’s breathing room. By front-loading AU$100 million now and spacing out the rest, it ensures Star stays solvent while approvals play out in the background.
And if regulators take longer than expected? Bally’s still has until October 2025 to pay up. The included convertible notes won’t mature until 2029 and will yield a 9% interest rate in the meantime.
A Rescue, Not a Fire Sale
What stands out about this deal is that it’s not about selling off assets. Bally’s has made it clear: the casinos in Sydney, Brisbane, and the Gold Coast will remain the heart of the business. Preserving these core properties aligns with Bally’s broader company mission to invest in long-term, sustainable operations rather than short-term gains. That approach is a contrast to what often happens when outside investors step in—asset stripping, layoffs, and major restructuring.
Instead, Bally’s is aiming to restore credibility, strengthen operations, and rebuild trust with both regulators and the public.
They’ve done it before. In the U.S., Bally’s has acquired and revitalised underperforming properties, layering in loyalty programs, tech upgrades, and revamped marketing. Doing it in Australia, though, will require navigating a different set of cultural and regulatory expectations.
What Happens Next?
The next few months will be pivotal. If shareholders approve the deal in June, Bally’s can start taking a more active role in planning the company’s turnaround. If regulators follow through quickly, full control could shift before the end of 2025.
That would mark a major moment, not just for Star, but for the Australian gaming industry as a whole.
International ownership of a leading domestic casino group has always been a sensitive topic. But with Star’s troubles so widely known, and Bally’s offering a credible way forward, resistance may be limited.
And for Bally’s, the timing is right. Australia remains one of the most mature gambling markets in the world, with a deeply rooted casino culture that values high-end venues, loyalty programs, and integrated entertainment experiences. Star’s properties still attract significant foot traffic despite recent headlines. If Bally’s can fix what’s broken without breaking what still works, this deal could end up being one of the savviest bets in recent gaming history.
