Australia’s Federal Court has ordered Star Entertainment Group to pay a combined AU$260 million (US$183 million) penalty for breaches of anti-money laundering and counter-terrorism financing law. The ruling, handed down on 28 October, closes a civil case that AUSTRAC first filed against the casino operator in 2022.
What happened
Justice Cameron Moore’s judgment splits the penalty between
a AU$195 million fine for The Star Sydney and a AU$65 million fine for The Star Gold Coast, reflecting the greater contraventions committed at the Sydney property
. The court found
the casino operator failed to maintain an adequate compliance programme, verify the sources of customers’ funds and properly monitor transactions involving high-risk gamblers
.
The misconduct is not recent.
The breaches covered the period from November 2016 to November 2022
, and
more than 1,200 customers were able to gamble through channels that exposed the casinos to money-laundering risks, including transactions involving unidentified third parties
.
Neither side got the figure it argued for.
Justice Moore said the AU$100 million fine proposed by Star was too low and the AU$400 million proposed by AUSTRAC too high
. The court also weighed Star’s conduct against precedent, though
Justice Moore refuted attempts by AUSTRAC to compare Star’s actions with those of Crown Resorts, which in 2023 reached an AU$450 million settlement with the regulator
. Payment is not immediate:
the penalty is to be paid in four equal instalments over 19 months
.
Why it matters
The case confirms that AML failures in gambling carry financial consequences long after the underlying conduct occurred, and that regulators and courts continue to treat historical breaches as live enforcement priorities. For operators, the ruling reinforces that customer due diligence and source-of-funds checks are not back-office formalities but core conditions of a licence to operate.
The penalty also has immediate balance-sheet implications.
Star confirmed that the quantum and payment terms of the penalty constitute a review event under its credit facility agreement with WhiteHawk Capital Partners
, though the company said
it does not consider the payment of the penalty will impact the Group’s ability to continue as a going concern
. Star had already set aside funds for the outcome, stating the amount was
materially in line with the provision already recorded in the Group’s 2026 Financial Statements
.
For affiliates and partners evaluating land-based brands with online ambitions, the episode is a reminder to factor compliance history into due diligence. Reputational overhang from AML enforcement can affect licensing timelines and partnership terms in other jurisdictions, even once a settlement is reached.
The bigger picture
Star Entertainment’s problems stem from a broader reckoning with casino AML standards in Australia.
The court also credited the NSW regulatory response to Star’s conduct, including earlier state penalties and the loss of the Sydney casino licence after the Bell inquiry found the company unsuitable in 2022
. The company’s chairman, Soo Kim, noted that
the current ownership and management team were not involved in the actions leading to the proceedings, while affirming the company’s commitment to demonstrating it now has the appropriate leadership and processes
.
The ruling lands against a backdrop of improving underlying performance, with Star having recently returned to profit after cost-cutting. It also arrives as regulators elsewhere continue to make AML enforcement a priority, following the record €37 million fine issued against EOD Code by the Dutch regulator. Together, the cases suggest compliance failures tied to customer monitoring remain one of the costliest categories of regulatory risk across the gambling industry, regardless of jurisdiction.
Sources
- iGaming Business – The Star Entertainment Group to pay AU$260 million penalty
- Well Played – Federal Court fines Star Entertainment AU$260 million in AUSTRAC case
- AsGam – Australia’s Federal Court hits Star with combined AU$260 million in penalties
- Focus Gaming News – Australia fines Star Entertainment AU$260m for AML breaches
- AsGam – Star engaging with lender WhiteHawk after AUSTRAC penalty sparks review event
- Sharecafe – The Star Entertainment Group Accepts $260 Million AUSTRAC Civil Penalty
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