Star Entertainment Chair Identifies VIP Treatment as Key Problem

Star Entertainment Group’s chair, Soo Kim, stated that the company’s primary issue is its treatment of high-value gamblers. This assessment comes as the casino operator awaits a Federal Court decision on a financial penalty for historical anti-money laundering breaches.

What Happened

Star Entertainment Group, which operates casinos in Sydney, the Gold Coast, and Brisbane, has been grappling with a series of scandals, including money laundering, organized crime infiltration, and governance failures (PerthNow). The company is currently facing a potential financial penalty of hundreds of millions of dollars for historical anti-money laundering breaches, with a Federal Court judgment expected shortly, according to PerthNow.

Soo Kim, who assumed the role of Star’s chair nine months prior following US gaming giant Bally’s Corp acquiring a 38 percent stake in the company as part of a $300 million rescue package in 2025, addressed shareholders at the annual general meeting. Kim stated, “The fire is out, and now the rebuilding starts,” while also expressing dismay at the company’s treatment of its high-value customers (PerthNow).

Kim identified the company’s “ill treatment of our own VIPs” as both its “No. 1 problem” and “No. 1 opportunity.” He attributed this issue to many VIPs being unable to navigate Star’s enhanced due diligence and know-your-customer requirements. Kim argued that the company cannot attribute these issues to regulatory rules, citing that competitors are able to welcome these customers under the same regulatory framework, suggesting Star’s “execution of the rules that is incorrect” (PerthNow).

Key Details

• Star Entertainment Group has faced license suspensions and scrutiny over years of money laundering and organized crime infiltration (PerthNow).
• Bally’s Corp acquired a 38 percent stake in Star as part of a $300 million rescue package in 2025, leading to Soo Kim’s appointment as chair (PerthNow).
• The Federal Court is expected to impose a financial penalty on Star for historical money-laundering violations, with AUSTRAC having requested a $400 million penalty in June 2025 (PerthNow).
• Star Sydney and Star Gold Coast are reportedly cash flow positive, with the group’s overall cash flow around $200 million, a significant improvement from burning over $20 million monthly nine months prior (PerthNow).
• Since October 19, 2024, average daily revenue at The Star Sydney has decreased by 20 percent compared to pre-reform levels, following the imposition of mandatory carded play and $5000 cash limits by regulators (PerthNow).

Why It Matters

The refocus on VIP customer treatment by Star Entertainment’s leadership signals a strategic shift in addressing operational challenges following extensive regulatory interventions. The company’s prior issues with high rollers linked to organized crime resulted in significant regulatory fallout and revenue declines, particularly after the imposition of mandatory carded play and cash limits at The Star Sydney (PerthNow). The chair’s acknowledgment that the company’s execution of regulatory rules, rather than the rules themselves, is hindering VIP engagement, suggests a potential re-evaluation of internal compliance processes and customer service protocols. This development is significant for an operator navigating both historical penalties and current market conditions, including competition with other regulated entities like Crown Resorts (PerthNow).

What’s Next

Star Entertainment Group awaits the Federal Court’s decision on the financial penalty for its historic money-laundering violations (PerthNow). Chair Soo Kim expressed confidence in the company’s future, despite reports suggesting the possibility of insolvency, stating, “I think there’ll be many, many more” annual general meetings (PerthNow).

Originally reported by PerthNow·Published 27 Oct 2026, 04:22