Bally’s Chair Weighs in on His Company’s Takeover of The Star Entertainment

The Star Entertainment Group, an Australian casino and hospitality operator, just entered into a binding term sheet with American casino operator Bally’s Corporation. Under the agreement, which is still subject to regulatory approval, Bally’s will take majority control and refinance The Star’s debt, solving its short-term financial problems.

In an interview with Inside Asian Gaming, Bally’s chair commented more on the agreement, providing insights into where the two companies are heading.

Bally’s Is Very Excited About Acquiring “Excellent Assets”

Bally’s Corp chair Soo Kim, who was in Los Angeles and preparing to fly back home, spoke with iAG’s vice chair and CEO, Andrew Scott, responding to questions about the deal with The Star.

Scott asked Kim whether Bally’s had been in talks with The Star all along or whether the Australian company only reached out to Bally’s once its deal with Salter brothers fell through. Kim admitted that the latter was the case. He elaborated that The Star didn’t immediately reach out to Bally’s but once it did, the deal came together rather quickly.

Scott then addressed The Star’s precarious financial situation, pointing out that the company’s current state is a long shot from its peak in 2018. In his interview with Kim, he asked whether Bally’s believes the deal with The Star would be a sound investment.

Kim responded that Bally’s is, in fact, excited to take control of The Star Entertainment. While Bally’s chair acknowledged that the Australian company has been in some trouble, he seem convinced that his team would be able to change its management and help it achieve its true potential.

Bally’s Is Not Concerned about Australia’s Regulatory Regime

Scott also questioned Kim about his feelings about the Australian regulations, pointing out that they are largely responsible for The Star’s precarious position. Kim responded that Bally’s acknowledges that gaming and regulation “go hand in hand” and added that regulatory structures are “to be embraced.”

Kim acknowledged that operators should be mindful of the rules in the markets they operate with and comply with the regulations. With this in mind, he said that Bally’s is “looking forward to having a good dialogue with the [Australian] regulators.”

Bally’s Will Prepare a Day 1 Action Plan

Responding to Scott’s questions about when Bally’s is going to get in charge of The Star’s business, Kim responded that he expects The Star shareholders to vote on the matter in 16 to 19 days. He added that he isn’t certain about how long regulators would take to approve the deal but noted that it would take at least 90 days, if not more.

Kim added that Bally’s is going to use the dependency of regulatory and shareholder approval to try to understand The Star’s business and come up with a “day one action plan” for when Bally’s comes into the office. He elaborated that Bally’s will try to understand what changes are needed to open a new chapter for the Australian company.

While Kim wasn’t sure whether Bally’s is going to rebrand The Star and its properties once it takes control, he added that it will be important to highlight that a significant change has taken place.

The full interview is available on Inside Asian Gaming’s official YouTube channel.