US-based entertainment giant Bally’s Corporation has agreed to invest in and partner with The Star to breathe new life into the ailing business in a deal worth AU$300 million.
With a proven track record of revitalising underperforming casino businesses, Bally’s will work collaboratively with regulators and stakeholders to support a successful turnaround of The Star with its three Australian properties – The Star Sydney, The Star Gold Coast, and The Star Brisbane – and a workforce of approximately 8,000 people.
The deal, which will see Bally’s take a controlling 56.7% stake in Star Entertainment. aims to preserve the company’s long-term potential, with Bally’s to leverage its operational expertise to deliver a more “resilient and sustainable” business, according to Bally’s Chairman Soo Kim.
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“This transaction provides Bally’s the opportunity to infuse The Star with what it needs to regain its position as Australia’s preeminent gaming destination,” he said. “And it allows The Star shareholders to share in what we confidently believe will be a brighter future together.”
Bally’s President George Papanier described The Star’s portfolio as a “wonderful set up properties” that operate in “fantastic markets”. “We are up for the challenge,” he added.
With 19 casinos across 11 US states, a golf course in New York and a horse racetrack in Colorado, Bally’s has already embarked on an international expansion with the acquisition of Newcastle, UK-based Aspers Casino. It also has an online presence with Bally Bet and Bally Casino.
The signing of this deal comes after previous refinancing efforts failed.
