Star Entertainment (ASX:SGR) Loses Another CEO: Is This Casino Stock Worth the Gamble?

Star Entertainment CEO Steps Down: What Next for SGR?

Star Entertainment (ASX: SGR) shares closed flat at A$0.105 yesterday after the company announced CEO Steve McCann has stepped down effective immediately. This marks the second time McCann has guided a troubled Australian casino through a crisis before walking away; he previously led Crown Resorts until Blackstone bought it in 2022. With the stock down roughly 50% from its 52-week high of A$0.21, we believe this leadership change adds fresh uncertainty to what was already a high-risk turnaround story.

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What McCann’s Exit Signals for Star Entertainment

McCann joined Star Entertainment during its darkest hour with one job: stop the company from collapsing. On that front, he delivered. He helped secure the A$300 million rescue deal from US casino giant Bally’s Corporation and the Mathieson family’s Investment Holdings.

That deal is now complete. Bally’s holds around 38% of Star, while the Mathieson family controls roughly 23%. Together, these new owners command a 61% stake. Bruce Mathieson Jr has stepped in as executive chairman while the board searches for a permanent CEO.

The timing is noteworthy. In our view, McCann’s exit suggests the rescue phase is done, and new owners want their own team running the show. This isn’t necessarily bad; Bally’s has turned around struggling casinos before, but it does mean more leadership change at a company that desperately needs stability.

Regulatory Risk: What Really Matters for Investors

For Star Entertainment shareholders, the CEO situation is secondary. The real question is whether this company can keep its casino licences.
The Star Sydney’s licence has been suspended since October 2022. The property remains open but operates under government-appointed manager Nick Weeks. NSW regulators have extended this arrangement until at least March 2026, which suggests they’re not yet satisfied with Star’s progress.

Queensland has taken a softer approach, repeatedly deferring any licence suspension for The Star Gold Coast. The latest extension pushes that decision to September 2026. This indicates regulators see some improvement, but Star still hasn’t proven it deserves full licence restoration.
The company also faces a potential penalty from AUSTRAC over money laundering compliance failures. The final amount remains unknown, but any large fine could strain an already weak balance sheet.

The numbers tell a tough story. Revenue dropped 29% to A$1.19 billion in FY25. The company posted a net loss of A$472 million, better than the A$1.69 billion loss in FY24, though that earlier figure included one-off write-downs. Star hasn’t paid shareholders a dividend since April 2020, and we see no prospect of that changing soon.

The Investor’s Takeaway for Star Entertainment

The bull case comes down to price and backing. At 10-11 cents, Star trades near its all-time low of A$0.08 from August 2025. Bally’s Chairman Soo Kim believes he can unlock “hundreds of millions” in savings and revenue growth. If remediation succeeds, there’s meaningful upside from these beaten-down levels.

The bear case is equally strong. Analyst consensus remains at “Sell.” Licence restoration is far from guaranteed, and leadership continues to be unsettled.

Our view is clear: Star Entertainment is a highly speculative punt, unsuitable for most retail investors. For those tempted, we suggest waiting until the March 2026 NSW suitability review provides regulatory clarity. Until then, the risks outweigh the potential rewards.