Star Entertainment: money laundering claims to teetering on the brink
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 10 2025
0mins
Should l Buy BALY?
Source: Reuters
Star Entertainment's Financial Struggles: Star Entertainment, facing severe financial difficulties due to regulatory scrutiny and penalties related to money laundering accusations, has received a A$250 million offer from U.S. casino group Bally's for over half of its shares as it seeks options to avoid bankruptcy.
Regulatory Challenges and Management Changes: The company has undergone multiple investigations and inquiries by Australian regulators, resulting in significant fines, management resignations, and a determination that it is unfit to hold a casino license, leading to ongoing efforts to restructure and secure funding.
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Analyst Views on BALY
Wall Street analysts forecast BALY stock price to rise
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 9.640
Low
11.00
Averages
16.33
High
20.00
Current: 9.640
Low
11.00
Averages
16.33
High
20.00
About BALY
Bally's Corporation is a global casino-entertainment company with an omnichannel presence. The Company’s segment includes Casinos & Resorts and North America Interactive. It owns and operates approximately 19 casinos across 11 US states and one casino in Newcastle, UK, along with a golf course in New York and a horse racetrack in Colorado. It also owns Bally Bet, a sports betting and iGaming platform, licensed in 13 jurisdictions in North America. Its casino operations include approximately 17,700 slot machines, 630 table games, and 3,950 hotel rooms. Its Casinos & Resorts include Bally's Atlantic City, Bally’s Dover, Bally’s Tiverton and others. The North America Interactive segment includes a portfolio of sports betting, iGaming, and free-to-play gaming brands. The International Interactive segment includes the Company’s interactive European gaming operations, the Company’s global licensing operations, as well as one casino property, Bally’s Newcastle, in the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Consumer Sentiment Plummets, Impacting Stock Market
- Consumer Confidence Drop: The University of Michigan's survey revealed a March consumer sentiment index of 55.3, the lowest this year, primarily driven by financial concerns stemming from the Iran war, particularly among middle and higher-income households, which may lead to reduced consumer spending and impact corporate earnings and economic growth.
- Rising Inflation Expectations: Consumers now anticipate an average inflation rate of 3.8% over the next 12 months, indicating heightened concerns about the economic outlook, which could prompt more cautious spending behavior and exacerbate the risk of economic slowdown.
- Market Reaction: Stocks such as Opendoor, PENN Entertainment, and Bally's experienced significant declines, with Opendoor down 3.8%, PENN down 5.7%, and Bally's down 6.2%, reflecting the market's sensitivity to negative news and potentially providing investors with opportunities to buy quality stocks at lower prices.
- Bally's Stock Volatility: Bally's shares have seen 61 moves greater than 5% in the past year; despite today's drop, the market perceives the news as meaningful but not fundamentally altering its view of the business, especially following its partnership with Intralot to launch new lottery brands, which may support future growth.
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- Significant Revenue Growth: Bally's reported Q4 revenue of $746.2 million, exceeding expectations by $76.78 million, indicating strong performance in a competitive gaming market.
- Casino and Resort Revenue Boost: Revenue from casinos and resorts reached $366.2 million, a 12.9% year-over-year increase, benefiting from the February 2025 acquisition of Queen Casino & Entertainment, which solidifies the company's market position.
- Strong B2C Business: Bally's Intralot B2C revenue was $236.5 million, up 13.9% year-over-year, primarily driven by growth in the UK and Spain, showcasing the company's potential for international market expansion.
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- Market Confidence: Bally's Executive Chairman Soo Kim stated that the acquisition reflects the company's confidence in the Shreveport community and plans to reinvest to enhance the area's status as a premier gaming and entertainment destination, showcasing a long-term commitment.
- Strategic Adjustment: Boyd Gaming CEO Keith Smith noted that the sale aligns with the company's strategy to refine its operating model and nationwide property portfolio, indicating ongoing efforts to optimize asset allocation.
- Future Outlook: Bally's, as an existing operator, expects to close the transaction in Q3, subject to customary closing conditions and regulatory approvals, demonstrating confidence in the market's growth potential and the company's deep understanding of the local landscape.
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Boyd Gaming Sells Sam's Town Hotel in Louisiana to Bally's Corporation
- Transaction Details: Boyd Gaming Corporation announced the sale of Sam's Town Hotel and Casino in Louisiana to Bally's Corporation, with the transaction expected to close in Q3 2026; while terms were not disclosed, this move indicates Boyd's ongoing focus on refining its operational model.
- Market Confidence: Bally's Executive Chairman Soo Kim stated that the acquisition reflects their confidence in the Shreveport market, with plans to reinvest and strengthen the region's position as a premier gaming and entertainment destination, showcasing a commitment to future growth.
- Historical Context: Sam's Town has been part of Boyd Gaming since 2004, and CEO Keith Smith emphasized the importance of team members' contributions over the past two decades in providing excellent service to guests, highlighting the company's appreciation for its workforce.
- Strategic Adjustment: This sale aligns with Boyd Gaming's strategy of refining its nationwide property portfolio, indicating the company's commitment to adapting its assets to market changes while continuing to deliver outstanding customer experiences.
See More
GLPI Reports Record Financial Results for 2025
- Significant Revenue Growth: GLPI reported total revenue of $407 million for Q4 2025, a 4.5% year-over-year increase, with annual revenue reaching $1.594 billion, showcasing strong performance in the regional gaming market and expected to drive future growth.
- Steady AFFO Increase: The Adjusted Funds from Operations (AFFO) for Q4 2025 was $290 million, up 7.5% year-over-year, reflecting ongoing improvements in lease stability and operational efficiency, enhancing potential shareholder returns.
- Expanded Capital Deployment: Despite challenges in the financing environment, GLPI executed approximately $876 million in new transactions in 2025, with a blended cap rate exceeding 9%, laying the groundwork for future investment opportunities.
- Strong Financial Leverage: As of year-end 2025, the company's net debt to adjusted EBITDA ratio stood at 4.6, below the lower end of its target range, indicating the company's capacity to meet financial commitments while enabling further expansion.
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Consumer Sentiment Plummets, Impacting Stock Market
- Consumer Confidence Drop: The University of Michigan's survey revealed a March consumer sentiment index of 55.3, the lowest this year, primarily driven by financial concerns stemming from the Iran war, particularly among middle and higher-income households, which may lead to reduced consumer spending and impact corporate earnings and economic growth.
- Rising Inflation Expectations: Consumers now anticipate an average inflation rate of 3.8% over the next 12 months, indicating heightened concerns about the economic outlook, which could prompt more cautious spending behavior and exacerbate the risk of economic slowdown.
- Market Reaction: Stocks such as Opendoor, PENN Entertainment, and Bally's experienced significant declines, with Opendoor down 3.8%, PENN down 5.7%, and Bally's down 6.2%, reflecting the market's sensitivity to negative news and potentially providing investors with opportunities to buy quality stocks at lower prices.
- Bally's Stock Volatility: Bally's shares have seen 61 moves greater than 5% in the past year; despite today's drop, the market perceives the news as meaningful but not fundamentally altering its view of the business, especially following its partnership with Intralot to launch new lottery brands, which may support future growth.
See More
BALLY'S CORP: TRUIST SECURITIES LOWERS TARGET PRICE FROM $18 TO $13
Company Update: Bally's Corporation has announced a significant reduction in its target price for Truis Securities.
New Target Price: The target price has been cut from $18 to $13, indicating a notable decrease in expected valuation.
See More
Bally's Q4 Revenue Exceeds Expectations
- Significant Revenue Growth: Bally's reported Q4 revenue of $746.2 million, exceeding expectations by $76.78 million, indicating strong performance in a competitive gaming market.
- Casino and Resort Revenue Boost: Revenue from casinos and resorts reached $366.2 million, a 12.9% year-over-year increase, benefiting from the February 2025 acquisition of Queen Casino & Entertainment, which solidifies the company's market position.
- Strong B2C Business: Bally's Intralot B2C revenue was $236.5 million, up 13.9% year-over-year, primarily driven by growth in the UK and Spain, showcasing the company's potential for international market expansion.
- Surge in Interactive Revenue: North America Interactive revenue hit $62.3 million, a 55.4% year-over-year increase, reflecting robust growth in iGaming and sports wagering, signaling enhanced profitability prospects for the future.
See More
Boyd Gaming Sells Sam's Town Casino in Louisiana to Bally's Corporation
- Transaction Details: Boyd Gaming Corporation announced the sale of Sam's Town Hotel & Casino in Shreveport, Louisiana, to Bally's Corporation for an undisclosed amount, with the casino featuring 29,000 square feet of gaming space, 750 slot machines, and 14 table games, indicating its market value.
- Market Confidence: Bally's Executive Chairman Soo Kim stated that the acquisition reflects the company's confidence in the Shreveport community and plans to reinvest to enhance the area's status as a premier gaming and entertainment destination, showcasing a long-term commitment.
- Strategic Adjustment: Boyd Gaming CEO Keith Smith noted that the sale aligns with the company's strategy to refine its operating model and nationwide property portfolio, indicating ongoing efforts to optimize asset allocation.
- Future Outlook: Bally's, as an existing operator, expects to close the transaction in Q3, subject to customary closing conditions and regulatory approvals, demonstrating confidence in the market's growth potential and the company's deep understanding of the local landscape.
See More
Boyd Gaming Sells Sam's Town Hotel in Louisiana to Bally's Corporation
- Transaction Details: Boyd Gaming Corporation announced the sale of Sam's Town Hotel and Casino in Louisiana to Bally's Corporation, with the transaction expected to close in Q3 2026; while terms were not disclosed, this move indicates Boyd's ongoing focus on refining its operational model.
- Market Confidence: Bally's Executive Chairman Soo Kim stated that the acquisition reflects their confidence in the Shreveport market, with plans to reinvest and strengthen the region's position as a premier gaming and entertainment destination, showcasing a commitment to future growth.
- Historical Context: Sam's Town has been part of Boyd Gaming since 2004, and CEO Keith Smith emphasized the importance of team members' contributions over the past two decades in providing excellent service to guests, highlighting the company's appreciation for its workforce.
- Strategic Adjustment: This sale aligns with Boyd Gaming's strategy of refining its nationwide property portfolio, indicating the company's commitment to adapting its assets to market changes while continuing to deliver outstanding customer experiences.
See More
GLPI Reports Record Financial Results for 2025
- Significant Revenue Growth: GLPI reported total revenue of $407 million for Q4 2025, a 4.5% year-over-year increase, with annual revenue reaching $1.594 billion, showcasing strong performance in the regional gaming market and expected to drive future growth.
- Steady AFFO Increase: The Adjusted Funds from Operations (AFFO) for Q4 2025 was $290 million, up 7.5% year-over-year, reflecting ongoing improvements in lease stability and operational efficiency, enhancing potential shareholder returns.
- Expanded Capital Deployment: Despite challenges in the financing environment, GLPI executed approximately $876 million in new transactions in 2025, with a blended cap rate exceeding 9%, laying the groundwork for future investment opportunities.
- Strong Financial Leverage: As of year-end 2025, the company's net debt to adjusted EBITDA ratio stood at 4.6, below the lower end of its target range, indicating the company's capacity to meet financial commitments while enabling further expansion.
See More
