Star Entertainment Faces Restructuring Under Bally’s Chairman Proposed Strategy

The Star Entertainment Group’s newly appointed chairman, Soo Kim, has signaled potential operational changes for the Australian casino giant, including dismantling its centralized corporate structure. Kim, who also leads Bally’s Corporation in the US, emphasized that structural reforms may be unavoidable to stabilize the company after prolonged regulatory scrutiny, financial strain, and executive turnovers.

Kim’s remarks follow leadership changes triggered by the departure of former CEO Steve McCann. Bruce Mathieson Jr. took over as CEO from chairman, and Kim assumed the board’s top role. “We feel a sense of urgency and obligation and responsibility to put this on the right track,” Kim stated, prioritizing organizational stability over growth.

Corporate Overhaul

Star Entertainment’s restructuring plan will prioritize dismantling its centralized corporate framework, with chairman Kim criticizing the group’s 83% surge in head office staff since 2020 as financially unsustainable and non-compliant with the law. “Corporate has gone from 600 to 1,100 jobs in the last five years, which runs contrary to business finance, but is also regulatory mandate,” Kim explained, emphasizing that “even the notion that we have a corporate office has to be examined.”

The shift aligns with Bally’s Corporation’s decentralized strategy for Star’s Sydney, Brisbane, and Gold Coast properties. Authority will be transferred to venue-level management. Kim confirmed the transition would reduce reliance on headquarters, though warned of layoffs, stating, “We are prepared to move the company forward, and that might not be for everybody.”

Board Changes

Star’s governance structure rapidly shrank after the departure of four directors this month, including former chair Anne Ward and Peter Hodgson, leaving only chairman Soo Kim, Bally’s ally George Papanier, and CEO Bruce Mathieson Jr on the board. Kim termed the upheaval as unexpected yet potentially advantageous, stating, “It wasn’t the initial plan, but maybe it’s for the best. We are here and may be better for it.”

The governance crisis unfolded after the financial turmoil of a collapsed refinancing deal with Salter Brothers Capital, which threatened Star’s solvency. Bally’s and Mathieson-backed Investment Holdings intervened with emergency funding approved in November. The lifeline converted into majority equity for the companies, with Bally’s controlling 38% and Investment Holdings 23%.

Frozen Shares

Star’s stock has remained suspended since March 2025 as the company liquidates non-core assets, including its Treasury Brisbane and Sydney holdings. The suspension comes after years of regulatory probes into compliance lapses, ballooning debt, and operational deficit, worsened by the rise of online gambling.

Kim acknowledged ongoing reforms but tempered expectations, noting, “People make the assumption that we’re going to sit there and make as many changes as we can. We very rarely do that, but we are prepared to move the company forward.”