7 hours Ago By Savannah Meacham
Star Entertainment has narrowly dodged financial collapse with thousands of jobs saved after a United States casino giant swooped in to rescue the flailing business. The embattled casino operator has signed a $300 million rescue package with Bally's Corporation to save the business from administration. In a late-night update to the ASX on Monday, Star Entertainment revealed Bally's would pay $100 million by Wednesday to keep the business's doors open across Brisbane, the Gold Coast and Sydney.
Bally's, which operated 19 casinos across the US, will get a 56.7 per cent stake in Star. The remaining funds will be paid either following a shareholder vote or split into two payments before October 7.
Star is exploring a possible injection of $100 million by its largest shareholder Bruce Mathieson and if this occurs, Bally's contribution would drop to $200 million. The group's board will now seek for all shareholders to agree unanimously to the deal as it is within their best interests and will unlock the remaining Bally's contribution, the ASX statement said. Bally's is set to bring a proven track record to revitalising underperforming businesses, citing a "brighter future" for shareholders.
"This transaction provides Bally's the opportunity to infuse The Star with what it needs to regain its position as Australia's pre-eminent gaming destination and it allows The Star shareholders to share in what we confidently believe will be a brighter future together," chairman Soo Kim said in a statement. President George Papanier said the company is "up for a challenge". United Workers Union welcomed the deal for the 9000 employees across the group who could have been left high and dry if it collapsed.
"Any deal that promises to keep venues in Brisbane, the Gold Coast and Sydney operating as a going concern is a good result for the Star workers, their families and the communities they live in," the union's casinos director Andrew Jones said. "As we have said repeatedly, the alternative without a sensible resolution was thousands of workers facing the unemployment queue." The Star has been in a trading halt since the end of February after being unable to file its half-year financial report without a refinancing plan to save it.
The group has been on the brink of collapse for months but staved off administrators by offloading its 50 per cent stake in a new Brisbane precinct and a $250 million short-term bridging loan. It has been seeking a rescue package to stay afloat but until now has been unsuccessful, with the group most recently failing to secure $940 million from property development fund Salter Brothers Capital. The casino group was once worth billions of dollars but has since been slapped with fines totalling more than $210 million and licence suspensions after money laundering allegations.
A 2022 NSW inquiry found damning evidence of money laundering and counter-terrorism failings at the groups' Sydney casino while a 2024 probe found more breaches. A Queensland inquiry found The Star actively encouraged people banned from gaming in Victoria and NSW to gamble at its casinos in the Sunshine State..
