Private Equity Firm Standard General Completes $4.6 Billion Buyout of Bally's Corporation
Title: Bally's and Star Entertainment: The Latest Update on Their Epic Partnership
Author: Whizz Kid (Former Virginia Tech grad, ex-NCAA track star, and die-hard sports lover)
Date: 02/07/2025 06:23
Category: Financial News
Image Credit: PICRYL, PDM 1.0
Key Points:
- After a revision, Bally's agreed deal with Star Entertainment Group now stands at AUD 200 million, thanks to Bruce Mathieson's investment.
- 48.4 million shares and warrants for 11.6 million shares are yet to be resolved.
- Bally's boasts a variety of iGaming, sports betting, and casino platforms across numerous US states.
About the Author:
Whizz Kid, a sports enthusiast and skilled sportsbet, graduated from Virginia Tech. With a passion for up-to-the-minute news in the sports betting industry, he delivers detailed coverage and has made a name for himself, collaborating with esteemed entities like Forbes and VSiN. When not working, you can catch him working out, strolling the city, or catching the big game of the day.
Articles by Whizz Kid:
Check out more of my work
Related News:
Read more
Behind the Scenes:
The recent alterations in the Bally's deal involve a revised agreement with Australia's Star Entertainment Group. Key elements include:
- Investment Structure and Funding Amount: Initially a AUD 300 million investment via convertible notes and subordinated debt, it was cut to AUD 200 million following Bruce Mathieson's contribution of AUD 100 million. The financing is divided into two parts:
- First Section (AUD 100 million): Unconditional immediate cash for Star.
- Second Section (AUD 100 million + AUD 100 million): Dependent on shareholder approval (estimated June 2025) and regulatory consent.
- Ownership and Convertible Notes: Post-Mathieson's contribution, Bally's notes would control a significant piece of Star if totally converted. The original terms featured notes convertible to 56.7% of Star's shares, although the exact updated percentage remains undisclosed. Mathieson's intervention limits Bally's direct stake but maintains its operational influence.
- Warrants and Regulatory Status: Sources do not explicitly disclose warrants as part of the agreement. Focus remains on convertible notes (potentially diluting existing shares) and subordinated debt.
- Approvals Timeline: Shareholder vote predicted for June 2025, with decisions from regulators pending.
- Deadline: If approvals linger, the second tranche must be accessed by 7 October 2025.
In a Nutshell:
Bally’s still owes AUD 200 million, with ownership percentages depending on the terms of convertible notes. Warrants aren't mentioned in the revealed conditions.
- Whizz Kid, an ex-athlete and former Virginia Tech grad, discusses the revised AUD 200 million agreement between Bally's and Star Entertainment Group, thanks to Bruce Mathieson's investment.
- The partnership, which covers iGaming, sports betting, and casino platforms across several US states, still has 48.4 million shares and warrants for 11.6 million shares yet to be resolved.
- As a respected sportsbet and financial news writer, Whizz Kid has collaborated with entities like Forbes and VSiN and shares his insights on the sports betting industry.
- In the revised agreement, Bally's investment structure includes AUD 100 million in unconditional immediate cash for Star, with another AUD 100 million + AUD 100 million hinging on shareholder approval and regulatory consent.
- The agreement mentions convertible notes, potentially diluting existing shares, and subordinated debt but does not explicitly disclose warrants as part of the conditions.
