NICC Expresses Concerns Over Bally’s Bid to Acquire Star Casino

Introduction to the Bally’s Takeover Plan for Star Entertainment Group

Star Entertainment Group, the Australian casino operator facing several challenges, is once again in the spotlight as Bally’s Corporation from the United States pushes forward with its acquisition plans.

Although shareholders have approved a vital funding injection of AU$300 million (approximately US$195 million) offered by Bally’s and Bruce Mathieson’s Investment Holdings, the progression of this deal is currently hindered by regulatory scrutiny.

Regulatory Concerns from the New South Wales Independent Casino Commission

The New South Wales Independent Casino Commission (NICC), headed by Chairman Philip Crawford, remains unconvinced about the viability of the takeover plan. The commission is examining whether Bally’s is suitable to be associated with the casino license held by Star Entertainment.

Regulatory doubts date back to before Star’s recent management changes, fueled by past leadership and governance issues. Despite efforts by Star Entertainment to restore confidence—including the appointment of Steve McCann as group chief executive officer and managing director along with refreshed management at its Sydney venue—the NICC’s reservations persist.

Philip Crawford stated that Bally’s must demonstrate clear and convincing evidence of its suitability. The commission plans to scrutinize Star’s financial status and ask Bally’s for detailed future plans regarding leadership and financial management.

Additionally, the NICC is awaiting the outcome of AUSTRAC’s decision on a potential AU$400 million (about US$260 million) fine due to Star’s previous violations of anti-money laundering regulations, which adds further uncertainty and financial pressure on the group.

Bally’s Readiness and Star’s Concurrent Negotiations

Under the leadership of Chairman Soo Kim, Bally’s is eager to commence financial due diligence promptly; however, it awaits regulatory approval which remains uncertain in timing.

Meanwhile, Star Entertainment is engaged in separate discussions with Hong Kong-based firms Chow Tai Fook and Far East Consortium about the possible sale of its 50% stake in The Star Brisbane. This transaction, if completed, would relieve Star of associated development debt while providing AU$57 million (US$37 million) in return.

As part of this agreement, Star would acquire its partners’ shares in two Gold Coast towers located within The Star’s beachfront resort, potentially reshaping its asset structure.