Bally's Backs The Star's Acceptance of $260 Million Penalty

Bally's Corporation said it supports the Federal Court of Australia's ruling being accepted by The Star, the Australian casino operator. The case was brought by AUSTRAC and is based on allegations that the company breached the Anti-Money Laundering and Counter-Terrorism Financing Act in the past. The court ordered the company to pay a $260 million penalty. The payment will be made in four instalments over 19 months.

Bally's said the events at the center of the case took place before its investment and before the current board was appointed. The company said it accepts the seriousness of these past failures. Bally's Chairman Soo Kim said the new management team inherited a very difficult situation and has made significant progress in a short time.

The company's financial results also point to a recovery. In the first quarter of fiscal 2027, The Star's EBITDA was A$12 million. In the same period of the previous year, it was minus A$13 million. Combined revenue at the Sydney and Gold Coast properties rose 9 percent compared with the fourth quarter of fiscal 2026.

The New South Wales Independent Casino Commission acknowledged the progress made under new management in June 2026. Commission Chair Philip Crawford said that, taking into account the restructuring of the remediation work, Bally's expertise and technological developments, The Star's improvement has been substantial.

The Star said the penalty is largely in line with the provision it had already set aside, and that the instalment plan will not prevent the company from continuing its operations. The penalty is an review event under the company's credit agreement with WhiteHawk Capital Partners. The company said it believes its credit facility will remain available and that it is continuing discussions.