The Star Entertainment Group has been ordered by the Federal Court of Australia to pay an AUD$260 million penalty following breaches of anti-money laundering and counter-terrorism financing (AML/CTF) laws. The ruling, announced after ongoing enforcement by AUSTRAC, highlights significant compliance failures at the operator’s casinos between November 2016 and November 2022.
Details of the Court Ruling
The Federal Court found that The Star failed to maintain an adequate AML/CTF program and did not properly monitor customers for money laundering and terrorism financing risks. Justice Moore, who delivered the judgment, noted that The Star had already faced substantial penalties and regulatory interventions following separate inquiries in Queensland and New South Wales. These included fines and the suspension of casino licences, as well as the appointment of external managers to oversee operations.
Nature of the Breaches
The breaches identified by the court included serious lapses in high-risk customer management. The Star allowed over 1,200 high-risk customers to gamble through channels with elevated risks for money laundering and failed to verify customer information, establish the source of funds, or conduct adequate due diligence. The court also found that the operator permitted third-party transactions and cash deposits without proper transparency or recording of third-party identities.
The Star's operations enabled junkets and high-risk customers to move significant amounts of money through its casinos, with the court referencing revenue from junkets and high-risk customers totalling billions of dollars over the relevant period. The court emphasized that these actions undermined AUSTRAC and law enforcement agencies’ ability to trace illicit funds and disrupt unlawful activity.
Implications for the Industry
This penalty underscores the seriousness with which Australian authorities are treating AML/CTF compliance failures. For operators, the ruling demonstrates the substantial financial and reputational risks associated with inadequate compliance programs. Affiliates and suppliers working with operators must be alert to the regulatory environment and ensure their own practices align with legal expectations. Regulators are likely to maintain a strict approach, using significant penalties as a deterrent to non-compliance in the sector.
Ongoing Supervision and Licence Status
The Star’s Sydney casino licence remains suspended, with oversight by an appointed manager scheduled to continue until at least June 2027 unless ended earlier by the NSW Independent Casino Commission. The Gold Coast and Brisbane properties also remain under special management or external advisory until March 2027, reflecting the ongoing regulatory scrutiny facing the company.
Key takeaways
- The Star Entertainment Group fined AUD$260 million for AML/CTF breaches.
- Failures included inadequate customer due diligence and oversight of high-risk transactions.
- Regulatory action follows previous penalties and ongoing licence suspensions.
- The case signals continued strict enforcement by Australian authorities.
Update (30.10.2026)
The AUD$260 million penalty will be paid in four instalments over 19 months, as ordered by Federal Court judge Cameron Moore, who deemed The Star’s proposed AUD$100 million fine too low and AUSTRAC’s AUD$400 million request too high. The penalty addresses conduct prior to Bally’s investment and the appointment of the current board and executive team. AUSTRAC alleged that The Star allowed 117 high-risk customers to channel billions in suspected illicit funds, with documents revealing over AUD$125 billion gambled by junket high rollers between 2016 and 2020. Bally’s has since provided strategic support through an Umbrella Consultancy Agreement. The Star’s first quarter fiscal 2027 EBITDA reached AUD$12 million, reversing a loss from the previous year, and the NSW Independent Casino Commission has acknowledged improvements under new leadership. The company confirmed the penalty is accounted for in its 2026 financial statements and will not impact its ongoing operations.