Shareholders of Star Entertainment Group (SEG) have overwhelmingly voted in favour of US casino operator Bally’s $300m investment into the business, after being warned about The Star’s ability to continue as a going concern.
SEG held a shareholder general meeting today, with shareholders to vote on four items including the investment of Bally’s, SEG’s largest shareholder Investment Holdings (the Mathieson family) and the issuance of Convertible Notes.
The votes were:
- Item 1: Approval of acquisition of Relevant Interests in The Star’s Shares by Bally’s – resolution passed (99.36 per cent For)
- Item 2: Approval of acquisition of Relevant Interests in The Star’s Shares by Investment Holdings – resolution passed (99.17 per cent For)
- Item 3(a): Approval and ratification of prior allotment and issue of Tranche 1A Convertible Notes – resolution passed (99.15 per cent For)
- Item 3(b): Approval and ratification of prior allotment and issue of Tranche 1B Convertible Notes – resolution passed (98.83 per cent For)
In a Chairman’s address this morning, SEG’s Chairman Anne Ward said: “The Star is facing significant uncertainty regarding its ability to continue as a going concern, amid a challenging operating environment and several claims, including awaiting judgment in the civil proceedings launched by AUSTRAC, the hearing of which concluded on 11 June 2025.
“The strategic investments by Bally’s and Investment Holdings provide cash funding and assist The Star’s ability to continue as a going concern, helping to avoid outcomes such as voluntary administration, which is likely not to be in the best interests of shareholders.”
She added: “The Star appointed Grant Samuel as the Independent Expert to provide a report on whether the strategic investments, and the consequence of passing the strategic investments resolutions, are fair and reasonable for Shareholders.
“In its report, the Independent Expert has concluded that ‘there are compelling reasons for non- associated shareholders of The Star to approve each of the [Strategic Investments]. They will clearly be better off if the [Strategic Investments] proceed than if they do not. Accordingly, each of the [Strategic Investments] are reasonable having regard to the interests of the non-associated shareholders of The Star.
“[The Independent Expert] has concluded that the terms of each of the [Strategic Investments] are ‘not fair’ but the methodology required for this analysis under regulatory policy is, at best, theoretical and should not be the primary basis on which to judge the merits of the [Strategic Investments].’”
Bally’s Chairman Soo Kim told Reuters the company was looking forward to getting on with “the critical mission to put The Star on a sustainable path,” adding, “we are raring to get on with it.”
Bally’s owns and operates 19 casinos across 11 US states, along with a golf course in New York and a horse racetrack in Colorado, and holds OSB licenses in 13 jurisdictions across North America. In addition it has recently bought a casino in the UK and the Bally’s Interactive International division is a leading global interactive gaming operator with strong market shares in the United Kingdom and Spain.