The troubled casino operator has received $67 million in cash, part of a $300 million funding deal, as it awaits final authorisation for the full takeover by Bally’s and the Mathieson family.
Established more than ten years ago and listed on the ASX, Star operates casinos in Sydney, Brisbane and the Gold Coast. In recent years, the company has come under significant regulatory pressure due to repeated breaches of anti-money laundering laws. As it works to rebuild and reset its strategic direction, it has secured financial and operational support from American gaming group Bally’s.
Bally’s, which runs 19 casinos across the United States, has now fulfilled its $300 million funding commitment to Star. The investment includes subordinated debt and convertible securities, designed to ultimately secure Bally’s majority control. However, regulatory approvals are still pending in both New South Wales and Queensland. Once cleared, Bally’s will hold about 56% of Star while the Mathieson family will control more than 23%.
The funding arrives at a crucial time. Star’s net liabilities recently climbed to $426.3 million, exceeding its assets of $341.4 million. As of 26 September, the company held $163.5 million in available cash, leaving it under pressure to manage $430 million in debt while also working to avoid a substantial fine from the government’s financial crimes agency. The company is already in discussions to restructure this debt with support from new lenders, which may include the Mathieson group.
Although Bally’s investment represents a significant boost, the finalisation of regulatory processes could delay Star’s recovery. Plans to revamp leadership and set a more sustainable course for the business are underway, but key initiatives remain on hold until full probity clearance is received. With Star’s financial position under strain and public trust still fragile, the deal offers a path forward though certainty remains out of reach.
