NICC issues approvals for Bally’s Corporation to take next step as substantial shareholder of The Star
Bally’s clears comprehensive probity investigation
The NSW Independent Casino Commission (NICC) has provided the necessary approvals for Bally’s Corporation (Bally’s) to become a substantial shareholder of The Star Entertainment Group (TSEG).
Bally’s, and its related entities and key individuals associated with this transaction, have cleared a comprehensive probity investigation, conducted by the NICC and Liquor and Gaming NSW (L&GNSW), which has assessed a range of both financial and non-financial factors related to the company’s suitability and the suitability of key individuals involved in Bally’s.
Following this investigation, the Bally’s proposed corporate and individual close associates have today been approved as ‘suitable persons’ to be associated with the management and operation of The Star Sydney casino, subject to appropriate conditions.
“We appreciate the work of the Queensland OLGR, Liquor & Gaming New South Wales, and the NICC for their diligence and professionalism throughout this process,” says Soo Kim, Chairman of Bally’s Corporation. “We are more excited today than when we signed the deal in April and look forward to converting our holdings into shares, taking our seats on The Star’s Board, joining Bruce Mathieson, and participating in the Annual General Meeting.”
“While we have been waiting for probity, over the last several months, a dozen members of our team have had a chance to observe operations, culture and governance,” says George Papanier, President of Bally’s Corporation. “We now have our plan to actively support its governance, help strengthen operations, and contribute to a responsible and sustainable future for The Star.”
“These approvals reflect a strong and transparent regulatory process, and we appreciate the confidence shown in Bally’s and our associated entities,” says Robeson Reeves, CEO of Bally’s Corporation. “We thank Anne Ward, The Star’s Chairman and Steve McCann, Group Chief Executive Officer, for allowing us to do the analysis in the background and ready our action plan. We are fully committed to completing the Remediation Plan, delivering the highest operating standards and rebuilding a gaming destination that Australia can take pride in—one grounded in integrity, responsibility, and world-class standards.”
The NICC has also approved the increased shareholding of Bally’s as a ‘major change’ in the state of affairs of the casino operator of The Star Sydney, which is required under the Casino Control Act 1992 (The Act).
The NICC’s Chief Commissioner Philip Crawford said Bally’s had submitted a plan to improve on The Star’s financial performance, which it will be required to report back on regularly as a condition of the approval.
“Bally’s Corporation and its associated entities have undergone a rigorous assessment and ultimately satisfied the NICC that there are no adverse findings that would prevent them from becoming close associates of The Star,” Mr Crawford said.
In addition, the NICC has approved a proposal from Investment Holdings to increase its shareholdings in The Star.
Investment Holdings and its key individuals, including Bruce Mathieson Snr and Bruce Mathieson Jnr, have previously received close associate approval from the NICC.
“Both the close associate approvals and the major change approval for The Star will allow Bally’s and Investment Holdings to move forward with their financial and operational commitments in respect of The Star which we anticipate will be happening very soon,” Mr Crawford said.
“Bally’s and Investment Holdings have assured the NICC they will continue the essential remediation work required at The Star so that it can continue to remedy the serious concerns raised in the two Bell inquiries.”
The NICC’s decision does not affect the current status of The Star’s licence which remains suspended. The NICC-appointed manager Nick Weeks continues to have oversight over casino operations.
The Star remains subject to rigorous remediation milestones and reporting conditions relating to its AML/CTF, gambling harm, governance and culture uplift programs.
Probity investigations are conducted under The Act and entail scrutiny of ownership structures, assets, trusts and investments, as well as interactions with other regulators and any previous disciplinary outcomes.
Under The Act, regulatory approval is required for a ‘major change’ in the state of affairs of a casino including shareholdings above 10 per cent.
