Australia's Star Entertainment fined A$260 million over money laundering violations
Australia's Federal Court has fined The Star Entertainment Group A$260 million over historical money laundering violations linked to its casino operations. The penalty was imposed by Justice Cameron Moore and comes after years of scrutiny over the company's handling of financial crime risks. Star is Australia's largest listed casino operator and runs venues in Sydney, the Gold Coast and Brisbane.
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The case was brought by AUSTRAC, Australia's financial intelligence agency, which launched legal action in 2022. It accused the company of failing to adequately address money laundering risks connected to its dealings with the Asian gambling junket Suncity and its funder. The agency also said Star continued those relationships after becoming aware of reports of criminal links.
Justice Moore said the A$100 million penalty sought by Star was too low, while the A$400 million penalty sought by AUSTRAC was too high. The court ordered the fine to be paid in four instalments over 19 months. Star had previously warned that a penalty above A$100 million could force it into liquidation, underlining the financial pressure facing the company.
The ruling adds to a wider regulatory crackdown on casino operators in Australia, where concerns about anti-money-laundering controls have led to repeated enforcement action in recent years. The decision matters because it could affect the company's solvency and its ability to continue operating without further restructuring. It also highlights the scale of regulatory risk for listed gambling groups that rely on high-value customer flows and third-party junket arrangements.
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For regulators, the case is a test of whether large penalties can force lasting changes in compliance standards across the sector. Star's casinos in Sydney, the Gold Coast and Brisbane have been central to the company's business, making the ruling significant for both the operator and the broader gambling market. The enforcement action also follows earlier penalties against two former Star executives for breaches of the Corporations Act earlier this year.
Those cases form part of a broader pattern of scrutiny over governance and risk controls at the company. What remains unclear is how Star will manage the instalment schedule and whether the penalty will trigger further financial or operational changes. The company has already signalled that a much smaller fine could have threatened liquidation, so investors and regulators will be watching closely for any response.
The next focus is likely to be on whether Star can meet the payment terms while maintaining its business operations.
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