Bally’s Cleared to Take Over Star Entertainment as Regulators Approve Strategic Investment

Bally’s Corporation has secured full regulatory clearance to take control of Australian operator The Star Entertainment Group (The Star), following approval from authorities in both New South Wales and Queensland for the A$300 million investment.

The approval marks the end of months of regulatory scrutiny and allows Bally’s to begin its turnaround plan. It enables Bally’s to convert its notes into equity and appoint directors. The strategic investment consists of convertible notes and subordinated debt totaling A$300 million.

The Star confirmed the decision in a November 21 announcement to the Australian Securities Exchange. It noted that the NSW Independent Casino Commission (NICC) and Queensland’s Office of Liquor and Gaming Regulation (OLGR) completed comprehensive probity investigations and deemed Bally’s and its partners “suitable entities.”

The clearance removes the final regulatory barrier for the transaction that The Star announced in April and shareholders approved in June.

Regulators Give Bally’s the Green Light

The Star said it has “received all regulatory approvals necessary to complete the Strategic Investment.”

Chair Anne Ward described the approval as “a critical step in The Star’s progress towards a return to suitability and financial stability.”
The NICC confirmed that Bally’s and its related entities “cleared a comprehensive probity investigation.” The investigation found them to be “suitable persons.”

NICC Chief Commissioner Philip Crawford added that Bally’s has submitted a plan to improve the finances of The Star. Bally’s will be required to report on it regularly as a condition of approval.

Queensland issued a similar ruling. The Attorney-General affirmed that Bally’s and Investment Holdings were deemed “suitable entities” to be involved in the operation and management of Star’s Queensland casinos.

Lifeline After Deepening Crisis

The approval comes after a turbulent multi-year period for The Star. The operator became the subject of severe allegations. They included illicit activities and systemic integrity breaches. The allegations eventually triggered the two Bell inquiries.

They led to licence suspensions, sweeping AML/CTF remediation demands, and intense regulatory supervision across multiple jurisdictions.

By early 2025, Star’s liquidity position had worsened to the point where insolvency became a real possibility. With licences suspended, remediation obligations growing, and conventional financing avenues exhausted, the company had few options left. That’s when Bally’s offer came in, stabilizing the troubled operator.

The Star’s troubles continued after Bally’s takeover agreement. In late July, the operator announced that negotiations with its Hong Kong partners to sell its 50% stake in Queen’s Wharf Brisbane casino had collapsed. That sent The Star’s stock to an all-time low.

Still, less than two weeks later, the parties reached a binding agreement. That allowed the operator to offload the property and stabilize the immediate financial pressure.

Major Step in Bally’s 2.0 Growth Strategy

The Star acquisition is a key component of the company’s Bally’s 2.0 strategy. That’s a transformation plan aimed at building a “global omni-channel provider of retail and online experiences by expanding globally as a gaming and entertainment operator. “

Bally’s 2.0 includes multiple large-scale development projects, mergers, acquisitions, and strategic investments. Star’s portfolio aligns directly with that model. It represents a collection of high-value assets weighed down by regulatory failures, compliance gaps, and structural mismanagement.

The acquisition also provides Bally’s with an entry into a new geographic market, supporting its omni-channel expansion across both land-based and digital channels.

Bally’s can now work on restoring The Star’s integrity, rebuilding investor confidence, and driving long-term value through its global operating playbook.