The path has been cleared for Bally’s Corporation to take a substantial ownership position in The Star Entertainment Group after regulators in both New South Wales and Queensland signed off on extensive probity investigations. Their approvals, delivered following months of multi-agency scrutiny, now allow Bally’s and long-time shareholder Investment Holdings to convert their multistage AU$300 million investment into equity and move ahead with strategic involvement in the casino operator’s future direction.

Regulators Approve Bally’s and Investment Holdings After Extensive Checks

Both the NSW Independent Casino Commission (NICC) and Liquor and Gaming NSW conducted in-depth evaluations of Bally’s, its related entities, and key individuals. These reviews covered a wide range of financial and non-financial suitability factors, including ownership structures, prior regulatory interactions, and any relevant disciplinary history. After completing the investigation, the NICC confirmed that Bally’s and its associates had been approved as “suitable persons” to participate in the management and operation of The Star Sydney, subject to conditions.

The NICC also determined that the increase in Bally’s shareholding represented a “major change” in the state of affairs of the Sydney casino operator, a threshold set under the Casino Control Act 1992. NICC Chief Commissioner Philip Crawford explained in a press release that Bally’s had presented a financial-performance improvement plan as part of the approval process. As he stated, “Bally’s Corporation and its associated entities have undergone a rigorous assessment and ultimately satisfied the NICC that there are no adverse findings that would prevent them from becoming close associates of The Star.”

Queensland authorities reached the same conclusion. Attorney-General Deb Frecklington noted that the state’s Office of Liquor and Gaming Regulation had completed its suitability review alongside NSW regulators. According to her, “Following this investigation, and after careful review of the material presented to me, I have now granted the necessary regulatory approvals, which will allow Bally’s Corporation and Investment Holdings to convert their debt into equity in The Star, at their discretion.”

AU$300 Million Deal Positions Bally’s for Major Influence

The approvals unlock the conversion of Bally’s and Investment Holdings’ AU$300 million rescue package — a multi-tranche arrangement initially announced six months earlier. Upon conversion, their combined holding is expected to rise to approximately 61%, with Bally’s taking around 38%. The Star had signed a binding term sheet in April for the investment, describing it as essential amid financial uncertainty, ongoing regulatory inquiries, and continued obligations arising from the Bell inquiries.

Investment Holdings, led by Bruce Mathieson Snr and Bruce Mathieson Jnr, had already undergone close associate vetting in NSW, and both have once again been cleared to increase their shareholdings. Regulators in both states emphasized that Bally’s and Investment Holdings have committed to continuing the remediation and governance uplift work required of The Star. The NICC reiterated that these commitments must continue so that The Star can address issues highlighted in both Bell inquiries.

While the approval marks a significant turning point in The Star’s capital restructuring, it does not affect the current status of the Sydney casino licence, which remains suspended. NICC-appointed manager Nick Weeks continues to oversee casino operations. The Star is still subject to stringent remediation milestones and reporting obligations across areas including anti-money laundering and counter-terrorism financing (AML/CTF), gambling harm reduction, culture, and governance.

The Star’s board welcomed the outcome. In a statement, chair Anne Ward said the company was “very pleased” to have obtained all necessary regulatory approvals to progress with the investment. She added that “This is a critical step in The Star’s progress towards a return to suitability and financial stability,” and noted that the board looks forward to working with Bally’s and Investment Holdings to support “an orderly transition” and position the company for long-term recovery.