Bally’s Supports The Star After Federal Court Imposes $260m Penalty for Historical AML Breaches
Bally’s backs The Star’s acceptance of a $260m Federal Court penalty for pre-investment AML violations payable over 19 months. The company cites post-investment EBITDA swing to A$12m, 9% revenue growth and NICC recognition of remediation progress under new leadership. Penalty matches existing provisions with no expected solvency impact.
SCCG Take — Legacy enforcement is isolated from current operations through provisions and lender engagement. Bally’s operational input demonstrates how targeted compliance support can stabilise licensed assets facing historical liabilities.
Bally’s Corporation supports The Star’s acceptance of the Federal Court of Australia’s decision imposing a $260m penalty for historical violations of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The conduct occurred prior to Bally’s investment and before the current board and executive leadership took office. The penalty is payable in four instalments over 19 months.
Bally’s has provided strategic support to The Star under an Umbrella Consultancy Agreement, supplying expertise in casino operations, regulatory compliance and operational transformation. The company recognises the seriousness of the underlying conduct while noting the extent of changes implemented since its involvement.
Leadership Statements on Standards and Turnaround
“The issues underlying today’s decision are important, and we respect the work of AUSTRAC and the Federal Court in holding the industry to the high standards expected of casino operators,” said Soo Kim, executive chairman of Bally’s Corporation and chairman of The Star Entertainment Group. “We are equally proud of what The Star’s new leadership team has accomplished in a relatively short period of time. They inherited an extraordinarily challenging situation and have approached the turnaround with discipline, urgency and a clear understanding that strong casino operations and strong regulatory compliance must go hand in hand.”
The turnaround is progressing at a good pace, with circumstances materially different from when Bally’s first became involved. The company does not believe today’s decision renders The Star insolvent.
Financial Results and Regulatory Feedback
The Star reported Group EBITDA of A$12m for the first quarter of fiscal 2027, a A$25m improvement from negative A$13m in the prior-year period. Combined revenue from The Star Sydney and The Star Gold Coast increased nine per cent compared with the fourth quarter of fiscal 2026.
In June 2026 the NSW Independent Casino Commission recognised considerable progress under the new leadership. NICC Chief Commissioner Philip Crawford cited revised remediation workstreams, Bally’s expertise and technological improvements in identifying a “materially significant improvement.” The $260m penalty aligns with the provision in The Star’s 2026 financial statements and is not expected to affect the group’s ability to continue as a going concern. The amount triggers a review event under the credit facility with WhiteHawk Capital Partners, but The Star is engaging with the lender and remains confident the facility will continue to be available.
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