The Star Secures $300 Million Lifeline from Bally’s

by Kevin Lentz, 25 November 2025

Proving perhaps that patience can be a virtue, Bally’s has finally passed probity in Queensland and New South Wales to complete its seven month long takeover of troubled Australian casino giant Star Entertainment.

Troubled Sydney casino company Star Entertainment gets a lifeline. © Simon, Pixabay

Key Facts:

• Star Entertainment approved a A$300 million (US$195 million) rescue package from US operator Bally’s.
• Deal includes an immediate $A150 million (US$97 million) injection with a second tranche conditional.
• Australian regulators approved the agreement under strict financial and compliance oversight.
• The funding helps Star stabilize operations amid mounting debt and regulatory pressure.

Australian regulators have finally granted long-sought permission to Bally’s and its partners to proceed with a bailout of the troubled Star Entertainment Group, based in Sydney. Because the gaming operator also had casinos on the Gold Coast and in Brisbane, several Australian state gaming regulators needed to sign off.

Bally’s and Australian pub and pokie baron Bruce Mathieson first cobbled together the lifeline back in April and got it approved by shareholders in June. However, due to the high-profile case involving Star’s past misdeeds, regulators needed to conduct a rigorous suitability assessment.

Complinace Failures

Star was accused of a litany of crimes in an almost 1,000-page investigation handed down by the Gaming Commission in New South Wales (NSW) in 2022. The allegation from the so-called Bell inquiries included laundering billions of dollars of dirty money from junket operators and triad gangs.

They also apparently failed to conduct the required source of funds checks on hundreds of VIP guests, and then reputedly lied to both regulators and stockholders when questioned.

This eventually resulted in their license being suspended and a state-appointed special manager being put in charge. But now with approvals from the NSW Independent Casino Commission (NICC) in hand, Bally’s can convert its loan to stock equity and appoint new members to Star’s board.

Change in Leadership

This debt-to-equity swap is expected to result in Bally’s holding approximately a 40% ownership stake in the company, with their partner, Mathieson, holding 25% to 30%. Bally’s Chairman, Soo Kim, is widely believed to be one of the new board members, as is George Papanier, who serves as Bally’s President. Mathieson will become a non-executive director of the company.

Steve McCann, the current CEO, reportedly let 40 senior executives go in the past few weeks as Bally’s began the process of establishing its own team.

While these were presented as streamlining operations and stabilizing budgets, it’s hard not to see the writing on the wall, as Bally’s has long made clear that it felt the company had been mismanaged.

This transaction provides Bally’s the opportunity to infuse The Star with what it needs to regain its position as Australia’s preeminent gaming destination. And it allows The Star shareholders to share in what we confidently believe will be a brighter future together. – Soo Kim/Bally’s, Chairman, Press Release

New Chapter

With approval finally in hand, The Star now enters a fraught transition period. Regulators have made it clear that they expect Bally’s to meet strict Know Your Customer and anti–money laundering requirements. The company will remain under close supervision until compliance milestones are met.

Bally’s must also stabilize its operations, rebuild customer trust, and establish a leadership team that demonstrates a stronger commitment to both regulators and guests. Without measurable improvements across these areas, The Star’s struggles are likely to continue.

For now, the agreement provides much-needed liquidity and operational breathing room. Whether it becomes a full recovery will depend largely on the team Bally’s is assembling and its ability to deliver sustained, verifiable progress.