Bally’s $195M rescue of Star Entertainment faces regulatory hurdles in Australia
U.S.-based Bally's Corporation is set to take control of Australia's Star Entertainment Group, with shareholders approving a AU$300 million (US$195 million) financial rescue. The New South Wales Independent Casino Commission (NICC) has reservations about the plan and Star's leadership. Bally's, led by chairman Soo Kim, aims to begin financial due diligence immediately, despite uncertainty in regulatory approval timing. The NICC is awaiting AUSTRAC's determination of a AU$400 million financial penalty related to Star's historical anti-money laundering breaches before proceeding. As part of the deal, Star would also gain its partners' financial interests in two Gold Coast towers at The Star's beachfront resort. Meanwhile, Star is negotiating with Hong Kong-based Chow Tai Fook and Far East Consortium to sell its 50% interest in The Star Brisbane, involving debt tied to the Brisbane development and receiving AU$57 million (US$37 million) in return. Bally's must provide clear and convincing evidence to the NICC to prove its suitability for association with a casino license. The NICC's examination of Star's financial circumstances and Bally's future plans will help determine the outcome of this significant takeover.
