Star Entertainment Ordered to Pay $260 Million for Money Laundering Failures

The Federal Court delivered a verdict on Wednesday that places Australia's largest listed casino operator in financial jeopardy. Justice Cameron Moore ordered Star Entertainment Group to pay a $260 million fine for historical violations of anti-money laundering laws. The penalty follows a legal campaign initiated by financial intelligence agency AUSTRAC four years ago.

The court set the price tag at $260 million, a figure AUSTRAC argued was necessary to address what the agency described as manifest failures. The government body initially sought an $400 million penalty. Star contested the amount, arguing that any fine above $100 million would push the company into liquidation given its current market value of $763 million. Justice Moore determined the $260 million figure reflected the harm caused by the company's conduct.

Justice Moore stated that the casino effectively placed profit ahead of compliance. The ruling allows Star 19 months to settle the debt in four equal payments. Shares in the company closed at 13 cents on Tuesday. The stock is currently in a trading halt for up to two days to allow management to explain the financial impact to investors.

The court record shows senior management ignored warnings about high-risk gamblers. One man with known criminal ties was permitted to funnel hundreds of millions of dollars through the casinos. The judge found that Star failed to impose adequate controls against money laundering and counter-terrorism financing.

Soo Kim, the chair of Star and Bally's Corp, addressed shareholders at the annual general meeting on Tuesday. She stated that the crisis is now behind the company and that rebuilding efforts are beginning. Kim noted that most customers had no involvement in the misconduct and should continue to be welcomed. She told the group, the fire is out, and now the rebuilding starts.

The fine follows a series of regulatory actions against the company. In June, former chief executive Matthias Beikir was fined $700,000 for failing to inform the board about suspicious conduct by Chinese junket operator Suncity in 2018 and 2019. That same month, Star Sydney received $10 million in fines for regulatory breaches, including failing to properly vet patrons for criminal links.

Star operates casinos in Sydney and the Gold Coast and runs a facility in Brisbane. The company has faced multiple scandals involving money laundering and governance issues since 2024. Bally's Corp saved the business from administration in April 2025, leading to Kim taking over the chair position.