US Gambling Giant Bally’s Bids $158M for Controlling Stake in Star Entertainment

Bally’s Corporation, the US-based gambling operator, has made an offer to acquire a controlling stake in Australia’s Star Entertainment Group. According to Reuters, Bally’s is prepared to pay $158 million for a 50.1% share in the struggling Australian company.

The bid comes as Star faces severe financial difficulties. Last week, the casino operator was forced to halt trading on the Australian Securities Exchange after failing to release its financial results on time.

Star, burdened with debt, confirmed it is reviewing Bally’s proposal, but it isn’t the only offer on the table. Hong Kong-based investors Far East Consortium and Chow Tai Fook have already expressed interest in acquiring a 50% stake in one of Star’s projects. Meanwhile, US investment firm Oaktree has offered a $410 million debt refinancing package.

“Importantly, the Bally’s offer now means that Star has more than one option on the table in endeavoring to dig its way out of financial strife,” said KCM Trade market analyst Tim Waterer.

Australia’s casino sector remains in crisis following widespread regulatory violations and the impact of border closures during the COVID-19 pandemic. Bally’s currently owns and operates 19 casinos across 11 US states, as well as a golf course in New York and a racetrack in Canada.