AUSTRAC defends $260 million penalty imposed on Star

Australia's financial crime watchdog AUSTRAC has defended the $260 million penalty the Federal Court imposed on Star Entertainment. AUSTRAC chief Brendan Thomas said the agency had never accepted the claim that a large penalty would lead the company into insolvency. The penalty was set as a compromise between the $400 million AUSTRAC sought and the $100 million that Star said it could pay.

The case, opened in 2022, concerned widespread money laundering and shortcomings in controls against terrorism financing. According to AUSTRAC, Star allowed 117 high-risk customers to move billions of dollars in suspected criminal proceeds through its casinos in Sydney, Brisbane and the Gold Coast.

Thomas described the ruling as a significant outcome of the four-year legal process. He argued that sanctions against major casino operators reduce opportunities for criminal organisations to pass dirty money through the country's gambling sector. He also said the company's share price had remained very low for a long time, that people in its management had faced separate cases, and that its reputation had been permanently damaged.

Star's total penalties, including sanctions imposed by state governments, exceed $400 million. These sanctions include roughly $200 million in penalties from the governments of Queensland and New South Wales.

Soo Kim, chair of Star's board, said conditions had changed since June 2025 and that the new penalty would not lead to insolvency. Kim is also chair of Bally's Corporation, the company's largest investor. About 18 months ago, Bally's and the Mathieson family rescued the company through a $300 million financing arrangement. Star's Sydney and Gold Coast facilities remain subject to special monitoring arrangements.