Australia Slams Star Entertainment Group with AUD 260M AML Penalty

The Star Entertainment Group has been handed an AUD 260 million ($182.5 million) fine due to anti-money laundering and counter-terrorism failings. The fine is related to historical activity at The Star’s properties and is the latest hurdle for the embattled casino and hospitality operator. The Penalty Relates to Older Failings In a judgement issued on October 28, 2026, the Federal Court of Australia opted to levy penalties of AUD 260 million against The Star, citing its systemic AML and CTF violations as the reason. The violations in question were related to The Star’s activity between 2016 and 2022. The issues in question included failures to properly monitor customer activity and address potential risk. Over a thousand monitoring failings were detected at Star Sydney, plus over three hundred at Star Queensland. To top it all off, The Star also boasted relationships with junket operators and allowed their members to engage in suspicious activity without appropriate controls. The proceedings were initiated by the AUSTRAC, which took action against The Star’s properties in Sydney and Queensland when the violations were first uncovered. The regulator sought penalties of up to AUD 400 million ($280.8 million), while The Star asked for a penalty of no more than AUD 100 million ($70.2 million), due to its precarious financial situation. In the end, the court determined AUD 260 million to be the appropriate amount. This includes a penalty of AUD 195 million ($136.8 million) for Star Sydney and a penalty of AUD 95 ($66.7 million) for Star Queensland. This is to be paid in four equal installments over 19 months, with the court expecting the first installment to be paid within 28 days of the decision. The Decision Could Affect the WhiteHawk Arrangement The Star noted that the penalty would affect its existing financial arrangement with WhiteHawk. While the quantum and payment terms of the penalty constitute a review event under the credit facility agreement The Star has entered into with WhiteHawk Capital Partners, The Star is currently engaging with WhiteHawk and is confident that the facility will remain available to The Star. The Star statement Soo Kim, The Star’s current chairman, commended the AUSTRAC’s work and said that he hopes to foster a positive relationship with the regulator. He emphasized that the company now boasts a better leadership, enhanced internal culture, and operational processes to “eliminate the kind of behaviors that the penalty is meant to dissuade.” For context, American gaming giant Bally’s took over The Star in hopes of helping the business recover. While Bally’s officials were initially appalled by The Star’s historic mismanagement, they remained optimistic about turning the Australian operator’s fortunes around.