New Star Entertainment Chairman Criticizes Company’s Financial Mismanagement
New Leadership Voices Concern Over Star Entertainment’s Future
Soo Kim, the newly appointed chairman of Star Entertainment Group, an Australian casino operator facing significant challenges, has expressed strong criticism regarding the company’s previous management. Kim, who also chairs the major US casino company Bally’s Corp, described Star Entertainment’s financial troubles as an extreme example of mismanagement.
Concerns Raised Over Performance at Key Casino Locations
During the World Gaming Forum at the ICE Barcelona trade show, Kim highlighted that, despite Star Entertainment’s financial difficulties, the situation presents a unique opportunity for Bally’s. However, he condemned the poor decisions behind the decline, specifically pointing to the Sydney and Gold Coast casinos. Once generating approximately AUD 500 million (around $337 million) annually two years ago, these properties are now producing negligible revenue.
Kim expressed disbelief at the situation, noting that although Bally’s has experience in revitalizing businesses, the current management’s failure to operate the casinos effectively is particularly severe.
Optimism for Turning Around Star Entertainment
Despite past failures, Kim remains hopeful about revitalizing the Star casinos. He emphasized the substantial value of the assets in Sydney and Gold Coast, worth billions, which could serve as a foundation for a successful turnaround. Kim believes this represents a world-class opportunity, underscoring that no similar chance compares when considering the replacement cost of these venues.
Bally’s Path to Majority Ownership of Star Entertainment
Bally’s Corp, in partnership with Australian pub operator Investment Holdings Pty Ltd, invested AUD 300 million (about $200 million) to acquire a majority stake of 61% in Star Entertainment. After receiving the necessary shareholder and regulatory approvals in 2025, the new owners undertook significant restructuring by making changes to the board and senior leadership.
The previous CEO of Star Entertainment Group, Steve McCann, resigned in December, facilitating Kim’s appointment as chairman. Simultaneously, Bruce Mathieson Jr of Investment Holdings stepped in as Group CEO after McCann’s sudden departure.
The Importance of World-Class Resorts for Australian Cities
Kim highlighted Sydney and Brisbane as premier global cities deserving of equally exceptional casino resorts. With Brisbane preparing to host the upcoming Olympic Games and Sydney having already hosted them, Kim stressed the importance of integrated resorts that boost tourism while catering to local communities in these major Asia-Pacific hubs.
