Bally’s strategic investment in The Star heads to shareholder vote on June 25th

The Star Entertainment Group Limited has dispatched a Notice of Meeting and Explanatory Memorandum for a general meeting scheduled for June 25th, 2025, where shareholders will vote on significant strategic investments totaling AU$300 million ($196 million).

The meeting will address resolutions concerning significant funding commitments from two parties: Bally’s Corporation, contributing AU$200 million ($130.5 million), and Investment Holdings Pty Ltd, controlled by the Mathieson family, investing AU$100 million ($65.3 million). These Strategic Investments Resolutions represent a vital capital injection for The Star.

Shareholders will also consider Placement Capacity Refresh Resolutions under ASX Listing Rule 7.4, which seek approval and ratification of convertible notes issued on April 11th, 2025. Bally’s received 278,517,860 convertible notes, while Investment Holdings was allocated 139,258,930 notes.

The Star’s board of directors has unanimously recommended that shareholders vote in favor of both the Strategic Investments Resolutions and the Placement Capacity Refresh Resolutions, assuming no superior proposal is received and the Independent Expert maintains its current recommendation as outlined in the Explanatory Memorandum.

Bally’s Corporation, a well-known US-based gaming operator, views the investment as a potential gateway to expanding its presence in the Asia-Pacific region. Meanwhile, the Mathieson family’s Investment Holdings, through the BMG Discretionary Trust, deepens its strategic influence within the group.

The general meeting comes at a critical juncture for The Star Entertainment Group, which has faced a series of regulatory and financial setbacks in recent years. The company has been under intense scrutiny following inquiries in New South Wales and Queensland that found serious governance and compliance failures, including breaches related to anti-money laundering and responsible gambling practices. 

These revelations prompted boardroom changes, executive departures, and led to the suspension of The Star’s casino licences in Sydney and Brisbane. As a result, the group has been operating under the supervision of state-appointed managers and is required to implement extensive remediation plans to regain regulatory trust.