Bally’s Corporation has expressed strong confidence in the future of The Star Entertainment Group following a strategic investment in the Australian gaming operator.

The statement came alongside the release of Bally’s financial results for the first quarter of 2025, which revealed a nearly 5% year-over-year decline in total revenue. The primary cause of the drop was the company’s exit from the Asian market, specifically the divestiture of its interactive business in the region.

The company also announced the completion of its transactions with The Queen Casino & Entertainment and Standard General during the reporting period. CEO Robeson Reeves highlighted that the four newly acquired properties offer “significant growth potential” and further strengthen Bally’s position for “sustainable long-term growth.”

Optimism Around The Star Investment

In April, Bally’s announced a strategic capital investment of AUD $300 million in The Star. Of this, $100 million was provided by The Star’s largest shareholder, Investment Holdings.

The remaining $200 million represents Bally’s own investment, structured as a multi-tranche convertible note and subordinated debt instrument. Upon conversion, Bally’s could acquire up to a 38% ownership stake in The Star.

To date, $67 million has already been funded, with the remainder subject to regulatory approvals.

Last month, The Star reported its financial results for the first half of FY2025, showing normalized net revenue of $649.6 million — a 25% drop compared to the same period last year ($865.7 million in H1 FY24).

In Bally’s Q1 report, CEO Robeson Reeves expressed a positive outlook for the Australian operator. He emphasized: “The opportunity to take a significant equity stake in Star and influence its future is consistent with Bally’s historical operating strategy and we are confident and optimistic that, similar to past situations, we can deploy our disciplined operating and financial practices to strengthen Star and create new value for Bally’s shareholders.”

Impact of Asia Interactive Business Divestiture

In its Q1 report, Bally’s recorded a 4.7% year-over-year decline in total company revenue, falling to $589.2 million from $618.5 million in the first quarter of 2024.

The main driver behind the revenue drop was a decline in the International Interactive segment, resulting from the divestiture of the Asia Interactive business in the fourth quarter of last year.

Revenue from the International Interactive segment decreased by 18.3% year-over-year to $191.7 million (compared to $234.7 million in 2024), while the segment’s adjusted EBITDAR fell by 7.7% to $77.1 million (versus $83.5 million in 2024).

Nevertheless, CEO Robeson Reeves noted that following the exit from the Asia Interactive business, Bally’s International Interactive operations are now primarily focused on regulated European markets, which “continue to demonstrate stable growth and deliver strong margins.”

Reeves also highlighted that when excluding revenues from divested markets and including licensing income, the International Interactive segment actually saw a 7.7% year-over-year revenue increase in Q1.

Bally’s Financial Performance: Growth Across Key Segments and Regions

Bally’s revenue from its UK operations increased by 4.9% year-over-year. CEO Robeson Reeves also highlighted revenue growth in Spain, supported by a relaxation of advertising restrictions in that market.

The casinos and resorts segment saw a 2.6% revenue increase, reaching $351.2 million (compared to $342.3 million in 2024). Adjusted EBITDAR for the segment rose by 6.3% to $95.1 million (from $89.4 million in 2024), driven by the addition of new properties acquired through the Queen transaction.

The company reported continued progress on the construction of its permanent casino in Chicago, supported by Gaming and Leisure Properties.

Reeves commented: “Despite macroeconomic concerns tied to trade policy, we continue to see relative stability in our casinos and resorts segment into Q2.”

The North America Interactive segment posted a 12.5% revenue increase to $44.5 million (2024: $40 million), supported by the integration of Queen’s interactive business and the expansion of online operations in Rhode Island. Adjusted EBITDAR also improved slightly, though it remained negative at -$8 million (2024: -$9.1 million).

Meanwhile, revenue from the corporate and other segment declined to $1.5 million (2024: $1.9 million), with adjusted EBITDAR falling to -$16.5 million (2024: -$15.7 million).

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