Bally's and Partners Secure 61% Majority Stake in Star Entertainment

• Bally’s Corp and Investment Holdings Pty Ltd are finalising a deal to take a controlling 61% stake in Star Entertainment Group.
• The A$300 million investment involves converting notes into equity, giving Bally’s approximately 38% ownership.
• Outgoing Chair Anne Ward confirmed at the AGM that all regulatory conditions for the takeover have been met.
• Ward warned shareholders that “material uncertainty” persists regarding AUSTRAC penalties and suspended casino licences.
• The company has implemented a rigorous new governance framework, with directors attending 91 board meetings in the last year.

Bally’s Set for Imminent Takeover of Star

Bally’s Corp and its consortium partner Investment Holdings Pty Ltd are poised to assume majority control of the troubled Australian operator, Star Entertainment Group, within days. The confirmation came during the company’s Annual General Meeting (AGM) in Brisbane, where outgoing Chair Anne Ward delivered her final address.

The takeover is the result of a strategic A$300 million (US$195 million) recapitalisation plan. Ward confirmed that all remaining conditions for the investment have been satisfied. This clears the path for the two investors to convert their notes into equity. Once finalised, Bally’s will hold approximately 38% of Star’s issued capital, while Investment Holdings will control around 23%. Combined, this gives the partnership a decisive 61% majority stake.

Ward stated that the regulatory approvals from both New South Wales and Queensland authorities signal confidence in the new owners’ ability to stabilise the business.

Governance Overhaul and Board Renewal

The past 12 months have been defined by aggressive restructuring to keep the company afloat. Ward highlighted that a completely new governance framework has been implemented. This system allocates specific oversight responsibilities across the group, increasing the accountability of the individual subsidiary boards that run The Star Sydney, The Star Gold Coast, and The Star Brisbane.

The intensity of the crisis was reflected in the board’s workload. Ward revealed that directors attended 91 board meetings during the 2025 financial year, a figure she noted was “around 10 times the number of meetings of a typical ASX listed company.”

With the takeover imminent, board renewal is accelerating. Bruce Mathieson, Jr. has been appointed as Investment Holdings’ nominee, and Don Pasquariello has been named as a director, pending final regulatory clearance. Ward confirmed she will retire “in coming days” once the transition to the new majority shareholders is complete.

Ongoing Risks and “Material Uncertainty”

Despite the successful capital injection, Ward was transparent about the precarious position of the business. She noted that material uncertainty remains regarding the Group’s status as a going concern due to several unresolved major issues.

The company is still working to complete its exit from the Destination Brisbane Consortium (DBC). More critically, it is awaiting judgement in civil penalty proceedings brought by AUSTRAC, the financial crimes watchdog, which could result in substantial fines. Furthermore, the operator is still in the process of trying to prove its suitability to regain its suspended casino licences in New South Wales and Queensland.

Ward emphasised that while the culture and risk management practices are improving, substantial work remains before the company can be considered fully rehabilitated by regulators.

Expert Analysis: A Critical Lifeline with Heavy Strings Attached

The entry of Bally’s Corp as the majority owner of Star Entertainment is less of a standard acquisition and more of an emergency rescue operation. Without this A$300 million liquidity injection, Star’s ability to survive the year was in serious doubt.

For Bally’s, this is a high-risk, high-reward play. They are acquiring a monopoly-style asset portfolio in top-tier Australian cities at a distressed valuation. However, the “material uncertainty” Ward referred to is not legal boilerplate; it is a very real threat. The potential AUSTRAC fine hangs over the company like a sword of Damocles. If that fine exceeds provisions, or if the NSW regulator refuses to reinstate the Sydney licence, the asset’s value could plummet further.

The regulatory approval of Bally’s is the most positive signal for investors in months. It suggests that Australian authorities are willing to work with the US operator to clean up the mess left by previous management. The immediate priority for Bally’s will be negotiating the final settlement with AUSTRAC to provide cost certainty, allowing them to finally focus on operational turnaround rather than crisis management.