After guiding the company through financial and regulatory struggles, Star Entertainment CEO Steve McCann announced Tuesday that he would be stepping down from the position.
This comes after Bally’s Corp. converted loans to the Australian casino company into equity. Bally’s now owns 38% of Star, while the Mathieson family owns 23%. The company’s board named Bruce Mathieson Jr. chairman earlier in the month. He will also serve as the company’s CEO.
“I think this is good news for investors because it means they can look forward to new blood at the helm,” Jessica Amir, a market strategist with the Moomoo online trading platform, told Reuters. “There are hopes that Bruce can potentially help lift investor confidence, and this is evidenced by Star shares rising today.”
McCann Kept Company Solvent
McCann took over in July 2024 and was charged with keeping the company afloat. Part of that included refinancing deals and asset sales to avoid insolvency, along with meeting with investors.
Amid a cash crunch, Bally’s Corp. loaned Star $300 million in April. That deal allowed for Bally’s to convert the loan into shares of more than a 50% ownership stake.
“We want to keep everything together rather than strip it apart,” Bally’s CEO Robeson Reeves told Sky News after the deal. “We think that things tend to operate better if they’re one larger organization where you can actually generate benefits for each of the properties one by one by making one tweak in one place.”
Star also saw a $33 million infusion in March from Hong Kong investors Far East Consortium International and Chow Tai Fook Enterprises, which already owned half of the company’s Brisbane casino. The deal gave Far East and Chow Tai Fook complete control of that casino and Star gained back the company’s two-thirds ownership in the Gold Coast Star casino.
Star Marred By Investigations Into Wrongdoings
In recent years, the company has faced investigations and fines from Australian regulatory bodies.
Those probes focused on money laundering and other financial crimes at Star Sydney. Regulators debated shutting the casino down, but it remained open after after paying a $10 million fine.
The New South Wales Independent Casino Commission considered a license revocation but continued reviewing the property’s new efforts to meet regulations.
