Star Entertainment Accepts A$260 Million Penalty for AML and CTF Failures

Star Entertainment Group has accepted a A$260 million Federal Court penalty for anti-money laundering and counter-terrorism financing failures at its Sydney and Queensland casinos. The ruling concludes civil proceedings launched by AUSTRAC in November 2022 against The Star Pty Limited and The Star Entertainment Qld Limited. The conduct examined by the court covered the period from November 2016 to November 2022.

Justice Cameron Moore ordered A$195 million from the Sydney operation and A$65 million from the Queensland business. The sums are due in four instalments between November 2026 and May 2028, along with AUSTRAC’s legal costs. AUSTRAC had sought A$400 million; Star warned that any penalty above A$100 million would strain its finances. The final amount matches provisions already booked in its 2026 accounts and will not affect its going-concern status.

Court Details Serious and Systemic Compliance Breaches

The court found widespread deficiencies in customer due diligence and monitoring, especially for high-risk patrons. Star Sydney recorded 1,190 monitoring contraventions tied to 102 high-risk customers and 1,088 others. Star Queensland logged 327 contraventions involving 77 high-risk customers and 250 additional patrons.

Junket revenue exceeded A$1.4 billion with pre-COVID profits above A$100 million. High-risk customers alone generated A$1.33 billion across the six years. The court also weighed earlier penalties of about A$200 million for overlapping conduct plus prior licence suspensions. Brendan Thomas, AUSTRAC chief executive, said the operator “allowed high-risk customers to gamble without properly establishing where their money came from and put profit over compliance on a large scale.” Remediation work reduced the ultimate penalty.

Ongoing Oversight and Financial Review

The penalty activates a review event under Star’s financing arrangement with WhiteHawk Capital Partners. The company is in discussions with the lender and says it expects the facility to remain available. Chairman Soo Kim noted the current board and management played no role in the historical conduct. Star Sydney’s casino licence suspension has been extended to June 2027.

As reported by World Casino News, the decision arrived alongside quarterly results showing group revenue at A$284 million, up 2 percent year-on-year, and EBITDA of A$12 million, a 191 percent improvement. Operators facing similar regulatory exposure should treat this outcome as a benchmark for the cost of sustained compliance shortfalls and the value of demonstrated remediation. Regulators continue to signal that licence conditions and external management will remain in place until measurable cultural change is proven.