A report connecting Bally's Corp to Australia's Star Entertainment raises significant questions. The biggest one: Would this partnership benefit either company?
According to anonymous sources, the Australian Financial Review reported on February 21 that Bally’s has surfaced as a potential bidder for the struggling Star Entertainment. Earlier this month, a delegation of Bally’s executives reportedly traveled to Australia to meet with Star and its lenders.
Among the visitors was allegedly Chairman Soo Kim, whose hedge fund, Standard General (SG), became Bally’s majority owner after a buyout last July. The delegation was said to have toured Star’s three properties—Star Sydney, Star Brisbane, and Star Gold Coast.
Bally’s currently runs 19 casinos across 11 U.S. states but has no international properties. Along with its existing operations, the company is actively managing major projects in Chicago, Las Vegas, and New York.
When asked about the report regarding Star Entertainment, Bally’s declined to comment.
Bally’s has multiple projects in progress
The key question remains: would a Bally’s-Star partnership be beneficial for both parties?
Las Vegas-based consultant Brendan Bussmann of B Global Advisors pointed out that Bally’s is already facing significant challenges in the U.S. With ongoing projects in Chicago and Las Vegas, the company is stretched thin. Meanwhile, acquiring Star—a financially troubled company—would not be a straightforward move. Bussmann noted that operators with an established presence in Asia, such as those in Macau or Singapore, might be better suited for such an acquisition.
“Look at the projects [Bally’s] is managing right now,” Bussmann told iGB. “They’re dealing with hurdles in Chicago and Las Vegas. Taking on another struggling company at this time seems questionable. Star also has significant compliance issues, making it a particularly complex situation.”
Star has faced two separate suitability reviews for its Star Sydney license, failing both, with the most recent ruling in October. Another review is scheduled after 31 March. The company has already paid hundreds of millions in fines for regulatory breaches and expects further penalties from Australia’s financial watchdog, Austrac.
A growing list of Star suitors
For Star Entertainment, Bally’s is the latest potential rescuer since its 8 January warning about dwindling cash reserves and liquidity. To stabilize its finances, Star has already sold its Star Sydney Events Centre assets for AU$60 million (£30.1 million/€36.4 million/US$38.1 million) and may continue offloading assets.
A 4 February report from The Australian suggested that U.S. private equity giant Blackstone is also monitoring the situation. However, sources indicate Blackstone will only make a move if Star enters administration.
That route presents complications as well. Blackstone already owns Crown Resorts, Star’s main competitor, which operates casinos in Sydney, Melbourne, and Perth. Since New South Wales (NSW) regulations prohibit one company from running both Sydney casinos, any bid by Blackstone would require regulatory reconsideration. Given Star’s financial distress, NSW authorities may be open to revisiting those restrictions.
Meanwhile, on 10 February, Star announced it had received buyout offers for its Star Brisbane joint venture from partners Chow Tai Fook and Far East Consortium. However, the company stated these proposals did not offer "sufficient value."
Adding another option, on 17 February, Star confirmed receiving a AU$650 million debt refinancing proposal from U.S.-based Oaktree Capital.
Amid these ongoing negotiations, Star cautioned in its statement regarding the Oaktree proposal that “there is no certainty that any of these discussions or negotiations will result in one or more definitive arrangements that might materially increase the group’s liquidity position. In the absence of one or more of those arrangements, there remains material uncertainty as to the group’s ability to continue as a going concern.”
What would the transition process look like?
Star CEO Steve McCann, who took the helm last June, previously served as Crown’s CEO, where he oversaw its takeover by Blackstone. However, he has previously stated that Star needed more time before considering mergers or acquisitions. Throughout its regulatory struggles, many believed Star was “too big to fail,” given its employment of thousands across multiple states. However, its January liquidity crisis shifted that perception.
From a regulatory standpoint, what would a takeover entail? While standard protocols exist, Star’s extensive compliance failures have reshaped regulatory procedures. In New South Wales (NSW), the NSW Independent Casino Commission (NICC) was established in 2022 as a dedicated casino regulator, separate from Liquor and Gaming NSW. This restructuring was a direct response to major scandals involving both Star and Crown.
Peter Cohen, a consultant with The Agenda Group and former CEO of Victoria’s gaming regulator, told iGB last July that any takeover process would be complex and lengthy. He suggested that multiple agencies would likely oversee different aspects of the review.
“It is possible that the process might be a hybrid of NICC checking for probity suitability while another department, such as NSW Treasury, examines the bidders’ finances and operational capability,” Cohen explained at the time.
Ongoing projects would be further along
The timeline for a potential Star acquisition could extend from 18 to 24 months or longer, according to Cohen. This means a final deal might not be completed until late 2026 or 2027. By then, Bally’s would be significantly further along with its current projects.
The company’s flagship Chicago casino, slated for completion in September 2026, would be either nearing launch or already operational. Meanwhile, Bally’s has expressed plans to open its Las Vegas casino alongside the MLB stadium being built on the same site, aiming for a spring 2028 debut—just after a potential Star acquisition.
In New York, the competition for three downstate casino licences is heating up. Bids are due by June, with licences expected to be awarded by the end of the year. Bally’s is vying to build a $2.5 billion resort on its Ferry Point golf course in the Bronx. If successful, this project would likely also be underway in late 2026 or 2027.
