Bally’s signals deep structural reset at Star Entertainment.
Bally’s Corporation is preparing a sweeping restructuring of Star Entertainment Group, raising the prospect of major layoffs as the Australian casino operator attempts to stabilise its operations. The move follows Bally’s entry into Star as a controlling shareholder after a prolonged period of financial distress and regulatory scrutiny.
Newly appointed chairman Soo Kim has indicated that Star’s expanded corporate structure is no longer viable. Speaking to local media, Kim said the company’s head office had grown significantly over recent years, adding costs that are now unsustainable given Star’s financial position. He emphasised that Bally’s has committed to regulators to decentralise management and return operational control to individual casino properties.
Star’s difficulties have been mounting for several years. The group has faced regulatory investigations related to compliance failures, rising debt levels, operational losses, and a failed refinancing effort earlier in 2025. Its shares have been suspended from trading on the Australian Securities Exchange since March, while the company sold non-core assets to raise liquidity.
In November, regulators approved a AU$300 million rescue package led by Bally’s and Australian investor Bruce Mathieson. The deal allowed the investors to convert funding into equity, giving them majority voting power and averting an immediate collapse. Since then, Star has undergone a rapid leadership overhaul, including multiple board departures and the appointment of Bruce Mathieson Jr as chief executive.
Industry analysts note that Star’s challenges mirror those faced by many traditional casino operators as regulation tightens and competition from online gambling intensifies. While Bally’s intervention has provided short-term stability, the success of the turnaround will depend on whether deep structural reform and new management practices can restore confidence and ensure Star’s long-term survival in Australia’s gaming market.
