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Chairman Soo Kim wants a better balance to stop players relocating to rivals
Star Entertainment’s Chairman Soo Kim has said he is ‘horrified’ and ‘mystified’ by how the casino had been treating its VIP players, and is looking to find a better balance between enforcing regulatory scrutiny and customer service.
Speaking at Star’s Annual General Meeting (AGM), Kim said: “Our ill-treatment of our own VIPs is actually so obvious that we know that’s our number one problem, but also our number one opportunity. It is our execution of the rules that is incorrect. So, we know the problem. This new team is trying to achieve the right balance, because we know that the vast, vast majority of our customers have no malfeasance or any unwanted behavior that they want to bring to The Star.”
“We want to and we need to welcome them, although we haven’t solved that one yet. in some of our earliest board meetings, earlier this year, I asked the question, ‘Hold on here. We’re taking a huge number of our customers and not allowing them to play because we can’t get them through our enhanced due diligence, because we don’t know them well enough. What percentage of these customers are now playing across the street?’
“The answer was: a good chunk. And so, my question is: how can we blame the regulatory rules if the other operator is able to, under the same regulatory construct, welcome these customers?
Kim’s comments came as Star Group delivered first-quarter EBITDA of $12m, up $25m, with combined revenues for The Star Sydney and The Star Gold Coast continuing the recent growth
momentum. They were up nine per cent from the fourth quarter of 2026.
At The Star Sydney, revenue increased one per cent from the same quarter last year and eight per cent from the last quarter, reflecting strong year-on-year electronic gaming machines growth, partially offset by softness in table games and non-gaming revenue. Year-on-year non-gaming revenue was adversely impacted by the completion of the sale of the Event Centre in September 2025 and the cessation of such events and catering revenues.
At The Star Gold Coast, Bboth Revenue and EBITDA increased substantially on the pcp, due to strong growth in electronic gaming machines, driven by increased marketing investment and promotional initiatives.
The Star is also the operator of The Star Brisbane under a CMA with DBC and recognises the operator fee as revenue and directly attributable overhead costs as the associated expense. The operator fee payable to The Star was amended with effect from 1 April 2026. Operator fee revenue for the current quarter, based on the amended CMA was $4.5m compared to $13.8m.
Kim added: “We have embraced the standards set by NSW and QLD regulators for anti-money laundering and knowing our customer and safer gambling that are the highest in the industry, and while we are still improving, we can say with confidence that the excesses of the past are in the past. But most critically of all, by March we had already achieved the first monthly revenue improvement year-over-year and arrested the revenue declines, and we continue to build on those positive monthly trends through today.
Each of The Star Sydney and The Star Gold Coast properties is now operating cash flow or EBITDA positive. And cash is now building, with our cash balance approximately $200m. Quite a different story than just nine months ago. The job is not done, but we could not have accomplished this without the invaluable contributions of our more than 7,000 strong Team Members who have put in honest shifts during these challenging times.
“Our belief is that world-class cities such as Sydney, Brisbane and Gold Coast deserve to have integrated resorts that are on par with the best the rest of the world has to offer. Our assets contribute to the country’s rich landscape of attractions and offerings that boost tourism while giving local populations a choice not to have to travel overseas to game. I read somewhere that one of the airlines is starting a Sydney to Las Vegas non-stop, and my only thought is that we need to make sure those planes are full of tourists coming from Vegas to see what we have to offer down here.”
“We are confident that The Star, with our amazing assets and incredible workforce, can deliver world-class gaming, hotels, food & beverage and entertainment offerings not just profitably for our shareholders but also ones that NSW and QLD can be proud of.”
Group CEO and Managing Director, Bruce Mathieson Jnr., added: “Our renewed focus on our customers can be seen through our focus on improving service standards, strengthening customer engagement, enhancing our offerings and creating more compelling reasons for people to choose The Star. While there is still significant work ahead, I am encouraged by improvements in visitation, customer engagement and operating performance across the business.”
