Bally’s Investment Into Star Entertainment Approved By Regulators

Bally’s Corporation has received the green light for clearing the investment into Australian casino operator, The Star Entertainment Group from both the New South Wales (NSW) and Queensland governments.

The approval process involved an examination by the New South Wales Independent Casino Commission (NICC) and Liquor and Gaming NSW (L&GNSW). These regulatory bodies say they conducted an extensive probity investigation, assessing various financial and non-financial factors to determine the suitability of Bally’s and its key personnel. The investigation aimed to ensure that the company meets the stringent standards required for managing and operating a casino.

Key Findings of the Investigation

• Suitability Assessment: Bally’s and its close associates were deemed “suitable persons” to be involved in the management of The Star Sydney casino, albeit under specific conditions.
• Financial Performance Plan: Bally’s presented a comprehensive plan aimed at improving The Star’s financial performance, which will require regular reporting to the NICC as part of the approval conditions.

NICC Chief Commissioner Philip Crawford highlighted the importance of this approval, stating that it represents a commitment to addressing the serious concerns raised during previous inquiries into The Star’s operations.

With the regulatory approval secured, Bally’s is now poised to convert its AU$300 million (approximately US$193.5 million) investment into equity. This will enable the company to nominate new members to The Star’s board.

The approval allows Bally’s to inject further capital into The Star but also signals a renewed focus on rectifying past operational issues. The NICC has emphasised that the decision does not alter the current status of The Star’s Sydney casino license, which remains suspended. A special manager appointed by the NICC, Nick Weeks, will continue to oversee the casino’s operations during this transitional phase.

In addition to Bally’s investment, the NICC has also approved a proposal from the Mathieson family’s Investment Holdings to increase its shareholding in The Star. This collaboration is expected to bolster the casino’s governance and operational strategies.

Both Bally’s and Investment Holdings have assured the NICC of their commitment to ongoing remediation efforts at The Star. This includes addressing the serious concerns raised in the two Bell inquiries, which scrutinised the casino’s practices and governance.