The newly appointed chairman of The Star Entertainment Group has indicated that the Australian casino operator may face a fundamental rethink of how it is run, including the potential dismantling of its central corporate structure. Soo Kim, who also serves as chairman of US-based casino company Bally’s Corporation, said sweeping internal changes may be unavoidable as Star attempts to stabilize after years of financial stress, regulatory pressure, and leadership upheaval.
Centralized Structure Under Review
Kim’s comments come shortly after he assumed the chairmanship of Star, a role he said was not part of the original plan. The change followed the sudden resignation of Steve McCann as chief executive, which triggered a rapid reshuffle at the top of the company. Bruce Mathieson Jr, who had only recently been named chairman, moved into the CEO role, while Kim stepped in as chair.
According to Kim, the priority is to put the company on firmer footing, even if that process proves disruptive. “We feel a sense of urgency and obligation and responsibility to put this on the right track,” he said in remarks to the Australian Financial Review, as reported by Inside Asian Gaming.
A key element of the proposed reset is a move away from Star’s current centralized corporate model. Kim pointed to the expansion of head office staffing over recent years as unsustainable, particularly given the group’s financial position and regulatory obligations.
“There has to be a change. Corporate has gone from 600 to 1,100 jobs in the last five years, which runs contrary to business finance, but is also a regulatory mandate,” Kim said. “There are no sacred cows, and even the notion that we have a corporate office has to be examined.”
Bally’s has previously committed to regulators that it would decentralize Star’s operations and strengthen property-level management across the group’s casino assets in Sydney, Brisbane, and the Gold Coast. Kim reiterated that commitment, suggesting that greater authority and accountability at the venue level would replace a heavy reliance on head office functions.
Such a shift is expected to have consequences for staffing. Kim acknowledged that not all roles would survive the transition, adding that “we are prepared to move the company forward, and that might not be for everybody.”
Leadership Shake-Up and Rescue Deal
The governance overhaul has already been significant. Former chairman Anne Ward and director Deborah Page departed earlier in the month, followed by Peter Hodgson and Toni Thornton after McCann’s exit. As a result, the Star board has been reduced to three directors: Kim, fellow Bally’s appointee George Papanier, and Mathieson Jr, who remains an executive director alongside his CEO duties.
Kim described the reshuffle as unplanned but potentially beneficial. “It wasn’t the initial plan, but maybe it’s for the best. We are here and may be better for it,” he said. He added that rebuilding the board and management team would be a priority, noting, “obviously, we need to recruit good people onto the board and to our management team to help us move forward and execute the plans.”
Bally’s involvement in Star intensified after the Australian group faced a liquidity crisis. Earlier this year, a proposed refinancing with Salter Brothers Capital collapsed, raising the prospect that Star might be unable to file financial accounts or continue trading. In response, Bally’s and Investment Holdings, backed by the Mathieson family, provided a AU$300 million lifeline that regulators approved in November. The investment allowed the partners to convert their funding into equity, giving them more than half of Star’s voting power. Bally’s now holds 38 percent of the company, while Investment Holdings controls 23 percent.
Star’s shares have remained suspended from trading since March 2025. During that period, the company has sold non-core assets, including parts of its Sydney complex, to generate cash.
Star’s difficulties follow years of regulatory investigations related to compliance failures, alongside mounting debt and operating losses. The group continues to work through corrective actions required by regulators, even as competition from online gambling intensifies and traditional casino operators face tighter oversight.
Kim said further company-wide changes are expected as Bally’s seeks to restore stability. “People make the assumption that we are 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,” he said.
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