Star Entertainment Group has received overwhelming shareholder approval for a critical A$300 million rescue plan, offering a financial lifeline to the struggling Australian casino operator.
At a shareholder meeting held on 25 June, over 99% of votes supported the proposal, according to filings with the Australian Securities Exchange (ASX).
The capital raise is led by Bally’s Corporation, a U.S.-based casino operator, in partnership with Investment Holdings Pty Ltd, Star’s largest existing shareholder. Investment Holdings has committed A$100 million of the total funding.
At the core of the deal is a structure involving convertible notes and subordinated debt, designed to allow conversion into equity. If fully converted, Bally’s could acquire up to 38% of Star’s issued shares, while Investment Holdings would grow its stake to 23%, giving the two entities majority control of the company.
Chair Anne Ward called the transaction a strategic necessity, emphasizing its role in restoring liquidity and avoiding voluntary administration. The board unanimously endorsed the plan, supported by an independent expert who found that shareholders would be “clearly better off” after the transaction.
The funding initiative comes after years of financial and regulatory difficulties for Star. The company has been under intense scrutiny from Australian authorities for alleged violations of anti-money laundering and counter-terrorism finance laws, leading to significant financial losses and reputational damage.
Star’s major assets include The Star Sydney and The Star Brisbane, with its 50% stake in Queen’s Wharf Brisbane currently up for sale. Meanwhile, Bally’s has filed applications with both New South Wales and Queensland authorities for casino operation approval, as part of its planned involvement in Star’s future.
Bally’s chairman, Soo Kim, reaffirmed the company’s commitment to supporting Star and expressed optimism about the regulatory review process.
If finalised, the deal would mark a fundamental shift in Star’s ownership, moving from primarily domestic control to significant foreign investment. The use of convertible and subordinated instruments ensures immediate capital support while aligning long-term interests, dependent on performance and regulatory clearance.
This transaction offers a strategic solution to Star’s longstanding challenge: raising capital amid ongoing investigations while keeping the business afloat and future-ready.
