Bally’s Corporation has been linked in Australian media with a move to invest in struggling operator Star Entertainment Group.
The Australian Financial Review reported on Friday that Bally’s representatives traveled to Australia to meet Star and visit its casinos earlier this month. The visiting Bally’s reps, who allegedly included Chairman Soo Kim, are also reported to have met with key Star shareholders and lenders.
SBC Americas reached out to Bally’s for comment but none was provided.
Star, which operates numerous casinos across Australia, continues to face dire financial struggles. Its leadership recently admitted that it only has a matter of months of cash reserves remaining. It has requested a A$100m (US$63.6 million) bridge loan and has also asked the government for tax deferrals to ease its liquidity crisis.
Steve McCann, who was approved as new group CEO and managing director in December, said recently that the company is operating under “safe harbor” status as it attempts to find new funding.
Numerous potential investors mooted
AFR adds that multiple other potential investors may hold interest in buying into Star, including U.S.-based Oaktree Capital and private equity firms Blackstone and Cerberus Capital Management.
Bally’s holds an extensive portfolio of American gaming properties in the US, including 19 casinos across 11 states and a digital footprint through its Bally Bet sportsbook, but it does not have experience running land-based gaming outside the U.S. It was taken over by Standard General in a $4.6 billion deal last year.
The feasibility of a company like Bally’s buying a stake in Star right now are uncertain, given that the latter is also facing potential financial penalties from Australia’s financial crime regulator over compliance breaches.
Star is due to report its updated financial status next week.
