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Star Entertainment Group is cutting up to 40 senior staff positions as part of a cost-reduction restructure ahead of Bally’s Corporation officially taking control of the Australian casino operator, according to reports from the Australian Financial Review.
The job cuts come as regulators in New South Wales and Queensland finalized probity approvals on November 20, clearing the way for Bally’s and investment partner Bruce Mathieson to assume control of the struggling casino operator through an AU$300 million rescue package.
CEO Announces Restructure in Staff Memo
Star Entertainment CEO Steve McCann distributed an internal staff memo in early November outlining the restructuring plans and acknowledging the difficult decisions ahead.
“We continue to navigate financial and environmental challenges while remaining firmly focused on building a stronger, future-ready organisation. To support this, we’ve reviewed our structure to best align with the group and property strategies. Unfortunately, this will mean some job losses, which will be challenging for people, and we ask that everyone works to manage through this process with respect and support for each other.”
The restructuring was expected following comments from Bally’s Chairman Soo Kim, who previously indicated the need to install a new executive team at Star Entertainment. In an interview with Inside Asian Gaming earlier this year, Kim expressed urgency in reviewing Star’s financials given the substantial losses the company has sustained since 2022, when regulatory reviews resulted in the suspension of Star’s casino licenses.
Regulatory Approvals Finalize Bally’s Control
The NSW Independent Casino Commission (NICC) announced on November 20 that Bally’s Corporation and its related entities had successfully completed a comprehensive probity investigation assessing financial and non-financial suitability factors.
NICC Chief Commissioner Philip Crawford confirmed that Bally’s and its associated entities satisfied the commission’s requirements to become close associates of The Star.
“Bally’s Corporation and its associated entities have undergone a rigorous assessment and ultimately satisfied the NICC that there are no adverse findings that would prevent them from becoming close associates of The Star. Both the close associate approvals and the major change approval for The Star will allow Bally’s and Investment Holdings to move forward with their financial and operational commitments in respect of The Star which we anticipate will be happening very soon.”
Queensland Attorney-General Deb Frecklington issued a parallel approval following investigations conducted by the Office of Liquor and Gaming Regulation in conjunction with NSW regulators.
“Following this investigation, and after careful review of the material presented to me, I have now granted the necessary regulatory approvals, which will allow Bally’s Corporation and Investment Holdings to convert their debt into equity in The Star, at their discretion. This will provide both entities with a significant ownership stake and influence over the management of The Star’s casino operations in Queensland.”
Financial Challenges and Ongoing Remediation
Star Entertainment reported a narrowed AU$13 million EBITDA loss for the September 2025 quarter. The company has identified several material uncertainties threatening its ability to continue as a going concern, including the pending AUSTRAC fine for historical anti-money laundering failures and its exit from the Destination Brisbane Consortium.
The regulatory approvals require Bally’s to submit regular reports on Star’s financial performance as a condition of the approval. Both Bally’s and Investment Holdings have committed to continuing the remediation work required to address serious concerns raised in the two Bell inquiries into Star’s operations.
Upon conversion of the rescue package, Bally’s and the Mathieson family will hold a combined 61.02% stake in Star Entertainment, with Bally’s controlling approximately 38%.
The NICC’s approval does not affect the current suspended status of The Star’s casino licenses, with independent manager Nick Weeks continuing to oversee casino operations.
Source: Australian Financial Review
