The Star begins climb to former glory with new Bally’s leadership

Embattled Australian casino operator Star Entertainment has conducted a major internal reshuffle to stabilise itself in the new year.

Soo Kim, Chair of Bally’s, has been announced as the Chairman of the Star Board, with other Board members consisting of George Papanier and Bruce Mathieson Jnr.

Mathieson Jnr also steps in as the Group CEO, replacing former CEO Steve McCann. Meanwhile, Peter Hodgson and Toni Thornton have handed in their resignations as Non-Executive Directors.

Kim commented: “We are fortunate to have Bruce lead our company as CEO. George and I understand what an honour and responsibility it is to join and contribute to the Board. We are confident our best days are ahead.”

Bally’s’ changing international position

Kim and Bally’s connection is not coincidental. The American gambling conglomerate is the biggest shareholder in the Australian firm, sweeping in 38% of the shares through a buyout deal earlier this year in an effort to save The Star. Mathieson and his family on the other hand hold 23%.

Allegations of money laundering led to years of investments into modernising its compliance standards and technology capabilities, which put a significant financial strain on The Star.

Although still floating, Australia’s second-biggest casino operator started the year deep into financial turmoil, recording a net deficit of AU$302m (£145m) and revenue dropping 25% YoY, with EBITDA down by AU$26m. 

Meanwhile, its shares were temporarily taken down from the Australian stock exchange due to failure to issue a financial statement on time. To recoup some of the losses, The Star offloaded the ownership of its flagship Queen’s Wharf casino.

Bally’s saw this as an opportunity to expand into Australia, and brokered an AU$300m investment deal that will aim to revitalise the struggling business. McCann was still steering The Star throughout these major developments for the company.

On his departure, he added: “The strategic investment by Bally’s Corporation and Investment Holdings Pty Ltd provides an opportunity for The Star to move in a new direction and pursue a pathway to recovery and future growth. Now is the right time for new leadership to be put in place with the experience and passion to build on that momentum and take The Star forward.

“I want to thank our 8,000-strong workforce for their commitment and resilience throughout a challenging period. Their dedication has been central to safeguarding the business and positioning it for its next chapter.”

The Star and Bally’s will now have to go up against top level market competitors such as Tabcorp, Ladbrokes Australia and Sportsbet, to name a few. Bally’s will also have to be on the lookout for regulatory shifts, with the current PM Albanese’s cabinet put under massive pressure to remap the landscape, and potential reforms remaining on the agenda, though the government has been slow to adopt them.

Bally’s providing a commercial lifeline to The Star, and subsequently taking on a role in its leadership, comes amid a wider repositioning. The firm’s CEO, Robeson Reeves, recently took on CEO duties at Intralot under the terms of a deal signed earlier this year which saw the Greek firm acquire the Bally’s Interactive division.