Ailing casino operator Star Entertainment’s rescue efforts have taken a new twist, with the company receiving a new funding offer from a US gambling giant.

Star avoided collapse on Friday after signing a deal to offload its stake in the Queen’s Wharf casino resort in Brisbane to the Hong Kong-based Far East Consortium and Chow Tai Fook Enterprises.

Under that deal, Star would receive a $53 million payment for agreeing to sell its 50 per cent stake to its Queen’s Wharf partners, allowing them to take full ownership of the venue.

However, on Monday Star confirmed it had received a rival rescue offer from the US-based gambling, betting and entertainment company Bally’s Corporation.

Under the proposal, which had been reported in The Australian,  Bally’s has proposed to inject a minimum $250 million into Star by March 28, an alternative to the Queen’s Wharf deal, offering Star a path to longer term funding and securing the future of almost 9000 jobs in NSW and Queensland.

The Star on Monday released a letter from Bally’s chairman Soo Kim to Star chair Anne Ward, with Kim pitching the Bally’s deal as an “alternative path” that would benefit Sar shareholders, regulators, lenders and staff.

Kim said the proposed funding injection would involve a capital raising of at least $250 million via convertible notes, to be fully underwritten by Bally’s. The notes would be convertible into “at least” 50.1 per cent of the Star’s shares. Kim said the proposal was fully funded, Star’s shareholders would have the right to participate in a “significant portion” of the raise, and Bally’s remained open to discussing “a larger transaction.”

“Importantly, our proposal delivers more than capital: Bally’s would partner with Star in deploying our significant operating experience in turning around casino assets and growing highly successful casino businesses globally,” Kim said in the letter.

US-listed Bally’s owns and operates 19 American casinos, as well as a golf course in New York and a horse racing track in Colorado.

On Friday, Star also said it had entered into an agreement with King Street Capital Management for $250 million in bridging finance to underpin its finances until the end of April and was exploring a financing proposal to provide up to $940 million in debt capacity.

Star’s shares remain suspended and last traded at 11¢. The company’s board is yet to sign off on its latest financial accounts.

Any deal to offload Star’s assets would require a number of approvals, including that from the Foreign Investment Review Board.

Star has been racing to shore up its finances and avoid falling into administration. Its earnings remain under pressure from a cost-of-living crisis, and analysts expect Star to lose money for years in its current state.

There’s also a looming penalty from Australia’s financial crimes regulator – a fine in the region of $330 million, according to some analysts – for alleged breaches of anti-money laundering laws.

With Colin Kruger and Bloomberg

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.