Star Entertainment has initiated a significant internal overhaul, with reports indicating that as many as 40 senior roles are being cut ahead of the anticipated takeover by Bally’s and the Mathieson family. This development marks one of the most consequential shifts within the Australian casino operator in recent years, as the organisation confronts sustained financial pressure, regulatory challenges, and a complex operational environment. The restructuring aligns with efforts to streamline the business and prepare for new leadership dynamics once the A$300m investment is fully approved, which could occur as early as this week.
According to internal communication from CEO Steve McCann, the company is adjusting its organisational structure to improve operational efficiency and ensure it is better positioned for the demands of the future. While the restructuring includes job reductions, McCann noted that the business will also focus on recruitment in targeted areas considered essential to long-term strategy and performance.
The cuts were not directed by the incoming investors, though Bally’s leadership has been open in its view that Star requires stronger governance and a refreshed operational approach. Star’s challenges are substantial, including repeated breaches of anti-money-laundering and counter-terrorism regulations, which resulted in heavy fines and the suspension of its Sydney casino licence. These regulatory issues contributed to declining high-spender visitation and substantial revenue drops across Sydney, Brisbane, and Gold Coast properties.
For the financial year ending 30 June, Star reported revenue of A$1.4bn, a 19% decline year-on-year, while also recording a statutory net loss of A$427.7m. The company continues negotiations to refinance A$430m in debt and is awaiting further penalties related to ongoing compliance investigations. The restructuring, therefore, represents a critical stage in stabilising the business before oversight formally shifts to its new controlling investors.
