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Star Entertainment Group has been ordered to pay a $260 million Federal Court penalty for serious anti-money laundering and counter-terrorism financing breaches, intensifying pressure on the casino operator as it works to stabilise its finances.
The penalty comprises $195 million relating to Star’s Sydney casino and $65 million for its Gold Coast operations, with the company given 19 months to pay the amount in four equal instalments.
Justice Cameron Moore said Star’s conduct caused significant harm and reflected a failure to prioritise regulatory compliance.
“In effect, Star put profit ahead of compliance,” Moore said.
The ruling lands well above the $100 million penalty Star had argued it could manage, but below the $400 million sought by financial crimes regulator AUSTRAC.
Star entered a trading halt before the judgment, with its shares last trading at $0.13.
Court finds serious compliance failures
AUSTRAC launched Federal Court proceedings against Star in 2022 after an investigation identified widespread weaknesses in the casino group’s anti-money laundering and counter-terrorism financing controls.
The regulator alleged Star provided designated services to high-risk customers despite concerns over criminal links and failed to adequately assess or manage money laundering risks.
Justice Moore said the scale of the breaches made the maximum potential penalty difficult to quantify.
“The maximum penalty is so large as to not be meaningful. The number of contraventions … is incalculable,” he said.
The court heard that high-risk gamblers were able to move hundreds of millions of dollars through Star casinos despite concerns about their backgrounds and behaviour.
Moore determined that a $100 million penalty would be too low, while AUSTRAC’s proposed $400 million sanction would be excessive.
Financial pressure remains
The penalty adds another significant burden for Star, which has spent several years battling regulatory investigations, licence restrictions, governance failures and mounting financial pressure.
Auditor EY warned in August that “material uncertainties” remained over Star’s ability to continue as a going concern.
The company reported a $307 million loss for the 2026 financial year,improving from a $428 million loss in the previous year.
Star had told the court that a penalty exceeding $100 million and payable within 12 months would be difficult to absorb and could threaten its survival.
The staged payment arrangement gives the group additional time to meet the $260 million obligation.
The ruling comes just a day after Star reported positive quarterly earnings and operating cash flow for the first time in two years, supported by stronger revenue across its Sydney, Gold Coast and Brisbane properties.
