Star Entertainment Group (ASX: SGR) has received the final regulatory approvals required to implement its previously approved $300 million strategic investment from Bally’s Corporation and Investment Holdings, clearing the way for both groups to convert their notes into equity and appoint nominee directors to the board.
The NSW Independent Casino Commission (NICC) and Queensland’s Office of Liquor and Gaming Regulation (OLGR) issued the approvals following extensive joint probity investigations into the suitability of both parties to become substantial shareholders in Star.
Star expects the equity conversion and board appointments to occur in the coming days, and will provide a further update at its annual general meeting on 25 November.
Comprehensive Probity Investigations
The NICC and OLGR each confirmed that Bally’s Corporation, its related entities, and key individuals had satisfied all requirements to become close associates of Star’s casino operations, subject to ongoing conditions.
Investment Holdings — associated with Bruce Mathieson Snr and Bruce Mathieson Jnr — was also cleared to increase its stake, having previously received close associate approval in NSW.
Regulators noted that both entities underwent rigorous scrutiny of ownership structures, finances, governance history, and previous regulatory interactions as part of the joint assessment.
NICC chief commissioner Philip Crawford said both groups had demonstrated suitability and were now able to proceed with their financial and operational commitments to Star.
Bally’s will be required to report regularly on its plan to improve Star’s financial performance as a condition of approval.
Critical Step in Remediation Pathway
Star chair Anne Ward said the approvals represent a major milestone in the company’s efforts to stabilise its financial position and progress toward regaining licence suitability.
“We are very pleased to have received all regulatory approvals necessary to complete the strategic investment—this is a critical step in The Star’s progress towards a return to suitability and financial stability,” she said.
Queensland Attorney-General Deb Frecklington said the OLGR’s findings confirmed both entities as suitable owners and managers of casino assets in the state, allowing the conversion of debt to equity at their discretion.
The OLGR emphasised that its approval does not affect the current suspension of Star’s casino licence, with the NICC-appointed manager continuing oversight of operations.
Star remains subject to strict remediation milestones across anti–money laundering and counter-terrorism financing controls, gambling harm minimisation, governance, and cultural uplift initiatives.
