Star Entertainment has struck a $300 million deal with a United States casino giant to stave off financial collapse after teetering on the brink for months.
The embattled casino operator's board has agreed to hand control of the group to Bally's Corporation to avoid going belly up, the Australian Financial Review reports.
Bally's operates 19 casinos across the US and online sports betting operations.
The American giant is expected to inject $250 million into the business and Star's largest shareholder Bruce Mathieson will provide $50 million under the deal.
Star Entertainment has been contacted for comment.
The group had been on the verge of folding for months but kept its head above water by offloading its 50 per cent stake in a new Brisbane precinct, and a $250 million short-term bridging loan.
It has been seeking financial lifelines to avoid closing its doors and displacing 9000 staff across Brisbane, the Gold Coast and Sydney, but has yet to announce a deal.
The group most recently failed to secure $940 million from property development fund Salter Brothers Capital, after Star did not receive a binding debt commitment letter.
The Star has been in a trading halt since the end of February after being unable to file its half-year financial report without a refinancing plan to save it.
The casino group was once worth billions of dollars but has since been slapped with fines totalling more than $210 million and licence suspensions after money laundering allegations.
In 2022, a inquiry found damning evidence of money laundering and counter-terrorism failings at the groups' Sydney casino.
A probe in 2024 found more breaches, including incidents of fraud and false welfare checks being logged for vulnerable customers.
A Queensland inquiry found The Star actively encouraged people banned from gaming in Victoria and NSW to its casinos in the Sunshine State.
