Star Entertainment fined A$260 million over money laundering and terrorism financing

The Australian federal court has fined Star Entertainment Group A$260 million (US$183 million) for breaching anti-money laundering and counter-terrorism financing (AML/CTF) laws. The ruling was published on Wednesday.

Justice Cameron Moore said the company failed to protect its casinos from organised crime and money laundering, and that these activities were suspected of financing terrorist networks. According to Moore, a significant part of Star's business model relied on turning a blind eye to customers carrying a high risk of money laundering or terrorism financing.

The judge also stressed that casinos profit directly when money inflows are made easier and oversight is reduced. Star's admitted figures showed it earned more than A$1.3 billion in gross gaming revenue from high-risk customers between 2016 and 2022.

The Australian Transaction Reports and Analysis Centre (AUSTRAC), Australia's financial intelligence agency, started legal action against the company in 2022. The agency sought a A$400 million penalty, while Star proposed A$100 million. AUSTRAC Chief Executive Brendan Thomas said companies would not be allowed to breach their obligations in pursuit of profit.

Following the investigations, the company underwent a major restructuring and is now controlled by the US-based Bally's Corporation. Chairman Soo Kim told shareholders that the company now fully complies with AML/CTF requirements.