Bally’s to take control of Star Entertainment after regulatory green light

Regulators in NSW and Queensland have approved the AUS$193m investment.

Australia.- Bally’s Corporation is to take majority control of The Star Entertainment Group by the end of this week following the completion of regulatory approvals and conditions on the AU$300m (US$193m) investment. Approval from the New South Wales Independent Casino Commission (NICC) and Queensland’s Office of Liquor and Gaming Regulation (OLGR) allows Bally’s and the Mathieson family’s Investment Holdings to convert their notes into equity.

Upon conversion, Bally’s will hold approximately 38 per cent of Star’s issued capital, with Investment Holdings controlling around 23 per cent. Together they will hold 61 per cent. The move comes after The Star spent the past two years navigating liquidity pressure and regulatory investigations.

Outgoing Chair Anne Ward described the approvals as critical to help stabilise the company. Key unresolved challenges include Star’s exit from the Destination Brisbane Consortium pending AUSTRAC civil proceedings and the recovery of suspended licences in New South Wales and Queensland. Ward said the board had operated under “extraordinary pressure” this year, holding 91 board meetings.

NICC’s probity assessment deemed Bally’s and key associates “suitable persons”, though the operator’s licence remains suspended. Regulators have attached conditions requiring Bally’s to regularly report on its financial improvement plan for Star, part of corrective measures imposed after the two inquiries uncovered serious governance and AML failings.

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See also: Bally’s Corp receives probity clearance for Star Entertainment takeover

Regulators in NSW and Queensland have approved the AUS$193m investment. Australia.- Bally’s Corporation is to take majority control of The Star Entertainment Group by the end of this week following…