Star Entertainment agrees to A$260 million penalty

Star Entertainment Group agreed to an A$260 million penalty in the Federal Court for failing to comply with anti-money laundering and counter-terrorism financing rules at its casino operations in Sydney and Queensland. The case began with legal proceedings opened by AUSTRAC in November 2022 and covered activities between November 2016 and November 2022.

Justice Cameron Moore ordered Star Sydney to pay A$195 million and Star Queensland to pay A$65 million. The penalties will be paid in four instalments between November 2026 and May 2028. The two subsidiaries will also cover AUSTRAC's legal costs. The agency had sought A$400 million. Star had argued that a penalty above A$100 million would seriously strain its financial position.

According to the court, the company had serious gaps in customer monitoring and in identity and source-of-funds checks for high-risk players. A total of 1,190 breaches were identified at Star Sydney and 327 at Star Queensland. Oversight of the junket business line and of suspicious activity was also criticised. According to the company's own data, high-risk customers generated about A$1.33 billion in revenue over six years until November 2022.

AUSTRAC chief Brendan Thomas said the company allowed customers to gamble without verifying the source of their money and put compliance behind profit. The court also took into account that Star had previously paid about A$200 million in penalties for similar breaches, and that its casino licences had been suspended and handed over to external administration.

Star said the final amount is largely in line with the provision it set aside in its 2026 accounts and that it will not affect the continuity of the business.