Star Entertainment Group (ASX:SGR) confirmed it received an unsolicited, non-binding proposal from New York Stock Exchange-listed Bally's, according to a Monday filing with the Australian bourse.

The proposal outlines a capital raise of at least AU$250 million through the issuance of convertible notes, which would be subordinated to existing senior lenders and convertible into at least 50.1% of Star's fully diluted shares, the filing said.

Bally's would underwrite the entire raise and indicated a willingness to discuss a larger transaction based on Star's liquidity and capital needs, the filing added.

Star's board will review the proposal, the company said.