Star to sign $300m lifeline, report says

Star Entertainment group will avoid collapse with a $300m deal reportedly set to be signed shortly.

Star Entertainment is on the cusp of signing a $300m salvation deal, the Australian Financial Review reports. Photo: NewsWire / Gaye Gerard

Star Entertainment has agreed to a $300m deal with a US-based casino giant which would save the Australian business from collapse, the Australian Financial Review has reported.

Citing three unnamed sources, the AFR report claimed contracts are being finalised and a deal could be inked as early as Monday. The deal would see Bally’s Corporation take control of the Australian casino operator.

The owner of casinos in Sydney, Brisbane and the Gold Coast, Star Entertainment has come within one week of running out of cash in recent times as a bailout was sought, the AFR reported.

Bally’s Corporation runs 19 casinos in 11 US states.

NewsWire has contacted Star for comment.

A $300m lifeline appears to be close for Star Entertainment. Picture: NewsWire / Glenn Campbell

Star Entertainment has been in a trading halt on the ASX since February 24, after it was unable to lodge half-yearly results.

The company also faces pressure from the corporate watchdog’s investigation into its operations.

In October 2022, the NSW Independent Casino Commission (NICC) imposed a $100m fine on Star after finding the company had allowed money laundering to take place at its Sydney casino.

A report into the business also found the company had exploited vulnerable gamblers.

On March 28, the NICC notified The Star that its license would remain suspended.

Last week, Star told the ASX a $750m deal with asset managers Salter Brothers had fallen through.

“The Star has continued to work diligently with Salter Brothers Capital in relation to the refinancing proposal but has not received a binding debt commitment letter and the refinancing proposal has now been withdrawn,” the ASX announcement stated.

Bally’s Corporation made a $250m bid in early March.

At the time, Star said the offer was for a 50.1 per cent stake in the company.

The Bally’s proposal would have allowed The Star keep its newly built Queen’s Wharf complex in Brisbane.

More to come