New Star Entertainment Chairman Appalled by Company’s Mismanagement
Summary
Soo Kim, newly appointed chair of Star Entertainment Group and chair of US operator Bally’s Corp, publicly criticised Star’s recent management at the World Gaming Forum during ICE Barcelona. He described the scale of the company’s decline — citing Sydney and Gold Coast properties that reportedly generated about AUD 500 million two years ago and are now “essentially zero” — as the worst mismanagement he has seen. Kim said Bally’s, which together with Investment Holdings invested AUD 300 million to secure a combined 61% stake, sees a generational turnaround opportunity because of the high replacement value of Star’s assets. Following regulatory and shareholder approvals in 2025, the new owners have refreshed Star’s board and senior management; former CEO Steve McCann stepped down and Bruce Mathieson Jr is now Group CEO. Kim emphasised the cities’ world-class status and the need for integrated resorts that support tourism and local demand.
Key Points
- Soo Kim labels Star Entertainment’s recent performance and caretaker management “severe” mismanagement.
- Bally’s and Investment Holdings paid AUD 300 million to secure a combined 61% majority in Star.
- Kim says Sydney and Gold Coast casinos fell from roughly AUD 500 million in revenue to “essentially zero” in two years.
- New majority owners have overhauled the board and senior management; Steve McCann stepped down and Bruce Mathieson Jr is Group CEO.
- Bally’s believes the replacement value of Star’s assets and the cities’ tourism prospects present a major turnaround opportunity, especially with events like the Brisbane Olympics on the horizon.
Why should I read this?
Short version: a major Aussie casino operator has been run badly, the new majority owners call it shocking, and they’re betting big that they can fix it. If you follow gambling industry moves, investor risk, or Aussie tourism, this is the kind of shake-up that will ripple through markets — so it’s worth a quick read.
Author style
Punchy. This report flags a potentially huge corporate turnaround and governance failure — important for investors, regulators and the industry. Read the detail if you want the full picture on why Bally’s thinks there’s value to unlock.
Context and relevance
The story matters beyond boardroom drama: it touches on corporate governance, foreign investment in Australian gaming, and the health of tourism-facing assets in Sydney and the Gold Coast. For investors it signals both downside from past mismanagement and potential upside if Bally’s executes a successful turnaround. Regulators, local stakeholders and employees will all watch how the new owners handle remediation and re-investment.