Star Entertainment to close head office in major restructure
Star Entertainment has reportedly told staff it plans to close its corporate office in its current form, triggering a major restructure that is expected to affect hundreds of jobs and hand management responsibility back to its individual casino precincts.
The plan was outlined in emails sent to employees by newly appointed chief executive Bruce Mathieson Jr, just weeks after Star chairman Soo Kim flagged significant head office redundancies in an interview late last year. The Australian Financial Review (AFR) first reported the development.
“It is our intent to close the corporate office in its current form,” Mathieson Jr wrote to staff, as reported by AFR. “Some tough decisions must be made. We must act. We must seize the moment in order to build a stronger and sustainable Star.”
While Mathieson Jr did not specify how many roles would be cut, people briefed on the discussions told the AFR that job losses are expected to run into the hundreds. Star’s corporate office currently employs around 600 people, according to company filings. Some staff will be redeployed into its casino precincts to localise management across Sydney, the Gold Coast, and Brisbane. The cuts are separate from the 40 positions eliminated under the previous management team in November.
Decentralisation driven by regulators and owners
Mathieson Jr said the existing corporate structure had added unnecessary complexity rather than value, echoing concerns long raised by regulators and Star’s new owners. “The corporate office has added complexity rather than value and simplification,” he wrote. “We must get closer to our customers and to your front-line team. And we have to meet the regulatory imperative to decentralise the business and empower our property teams.”
The email was sent on the same day Star announced the resignations of chief financial officer Frank Krile and chief operating officer Jeannie Mok. Their departures add to a lengthy list of executive exits, including former CEO Steve McCann, Star Sydney chief executive Janelle Campbell, and Star Brisbane chief executive Daniel Finch. Mathieson Jr formally joined Star’s board in November and became chief executive on December 17 following McCann’s resignation.
Bally’s takeover reshapes Star’s governance
The sweeping restructure comes after US casino giant Bally’s Corporation completed a A$300 million ($198.2 million) rescue deal alongside Investment Holdings, the vehicle controlled by billionaire pub baron Bruce Mathieson and his family. The transaction, finalised in November after regulatory approvals in Queensland and New South Wales, saw Bally’s take roughly 38 percent of Star’s equity, while Investment Holdings controls about 23 percent.
Star was on the brink of entering administration in March before the deal was announced, following the collapse of a proposed refinancing arrangement with Salter Brothers Capital. At the time, the company warned it may be unable to lodge accounts or continue trading on the ASX without fresh capital.
Chair flags dismantling of corporate structure
In December, Bally’s chair and Star chairman Soo Kim openly questioned the sustainability of Star’s centralised corporate model, signalling that dismantling the head office was under serious consideration.
“Corporate has gone from 600 to 1,100 jobs in the last five years, which also runs contrary to business finance, but is also a regulatory mandate,” Kim told the AFR. “The notion that we have a corporate office has to be examined.”
Kim said Bally’s had promised state regulators it would decentralise Star’s management and push decision-making back to property-level leadership as part of efforts to restore regulatory confidence. There are no sacred cows, and even the notion that we have a corporate office has to be examined,” he said at the time.
Boardroom overhaul continues
The restructuring of Star’s corporate office follows a dramatic board reshuffle earlier this year. Former chair Anne Ward and non-executive director Deborah Page stepped down, followed by the departures of Peter Hodgson and Toni Thornton after McCann’s exit.
Mathieson Jr was initially appointed chair of the board before stepping into the CEO role, while Kim assumed the chairmanship. Senior Bally’s executives Soo Kim and George Papanier also joined the board as nominees of the US casino operator.
Regulators in both Queensland and New South Wales approved Bally’s and Investment Holdings as suitable major shareholders after extensive probity checks, clearing the way for the rescue capital to be converted into equity.
Regulatory pressure remains
Despite the new ownership and leadership, Star continues to operate under intense regulatory oversight. In September, the New South Wales Independent Casino Commission extended the suspension of The Star Sydney’s casino licence until March 31, 2026, leaving the venue under the control of an independent manager.
Industry observers say the overhaul reflects broader pressures facing traditional casino operators, including tighter regulation, rising compliance costs, and growing competition from online gambling.
Step inside the world’s biggest iGaming community. Join HERE for weekly updates from the world’s iGaming authority and unlock subscriber-only offers.
