Australian Casino Operator Star Entertainment to Come Under Bally’s Control in $150M Deal

The board of Australian casino operator Star Entertainment has agreed to a refinancing deal that will give U.S. gaming giant Bally’s control over the company, Reuters reports, citing the Australian Financial Review. The agreement is aimed at keeping Star Entertainment from bankruptcy.

Under the terms of the deal, Bally’s — which operates 19 casinos across 11 U.S. states, along with a golf course in New York and a racetrack in Canada — will invest $149.8 million in Star Entertainment, effectively taking control of its operations.

In addition, Star Entertainment’s largest shareholder, billionaire Bruce Mathieson, will provide an additional $30 million in funding.

The refinancing agreement is expected to help Star Entertainment recover from a prolonged financial crisis triggered by the COVID-19 pandemic and multiple regulatory breaches. The company has been unable to file financial reports, leading to a continued suspension of its stock trading on the Australian Securities Exchange.

Bally’s initial interest in acquiring the struggling Australian operator was first reported last month, with the proposed deal at that time valued at $158 million.