Bally’s Corp CEO Robeson Reeves said Tuesday that the company remains “confident and optimistic” that its involvement with troubled Star Entertainment Group can help reverse the Australian casino operator’s flagging fortunes.
His comments, part of Bally’s 1Q25 results announcement, come after Bally’s committed last month to investing up to AU$300 million (US$194 million) for a controlling stake in Star. That investment has since been reduced to AU$200 million (US$129 million) which if fully realized could see Bally’s hold a 38% in the Australian firm. An initial AU$67 million (US$43 million) in liquidity was provided in April, Reeves confirmed.
“The opportunity to take a significant equity stake in Star and influence its future is consistent with Bally’s historical operating strategy and we are confident and optimistic that, similar to past situations, we can deploy our disciplined operating and financial practices to strengthen Star and create new value for Bally’s shareholders,” he explained.
Analysts said overnight that they believed Bally’s recently drew down some additional liquidity from its US$620 million revolver to fund the Star investment, which is likely to be treated as an equity investment for accounting purposes.
The company’s chairman, Soo Kim, previously told Inside Asian Gaming that he believes Bally’s expertise in reversing the fortunes of failing casino businesses can be effectively utilized to provide a pathway forward for Star, which has booked significant losses in recent quarters on reduced footfall and extreme costs linked to new regulatory requirements.
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