TLDR
The Star Entertainment Group has accepted a $260 million penalty for breaching anti-money laundering laws and says paying it will not threaten its survival, a reversal from its warning in court that a penalty above $100 million could push it into liquidation. Its shares rose about 7.7 per cent.
KEY TAKEAWAYS
The Star Entertainment Group says it can pay a $260 million penalty for breaching anti-money laundering laws, a day after a Federal Court judge imposed a sum well above the $100 million the casino operator had warned could force it into liquidation.[1][2]
Star told the ASX on Thursday that it accepted the penalty and did not expect the payments to affect its ability to continue as a going concern. The penalty is materially in line with the provision in its 2026 financial statements, it said.[2] Its shares rose about 7.7 per cent.[3]
A penalty between the two bids
Justice Cameron Moore said Star's $100 million figure was too low and AUSTRAC's $400 million was too high, and that he had weighed the need for deterrence against the company's finances. "The contraventions are serious, and a significant penalty is warranted," he said. He ordered $195 million be attributed to conduct in Sydney and $65 million to Queensland, payable in four instalments over 19 months.[1]
AUSTRAC sued Star in 2022 over its dealings with the Asian junket operator Suncity and its funder, which it continued despite reports of criminal links. Justice Moore said turning a blind eye to high-risk customers had been a "significant part of Star's business". "They were not mere oversights from time to time," he said.[1] AUSTRAC chief executive Brendan Thomas said the court found Star "put profit over compliance on a large scale".[1]
The lender has a say
The size and terms of the penalty are a review event under Star's credit facility with WhiteHawk Capital Partners. Star said it was talking to the lender and was confident the facility would remain available.[2] Chairman Soo Kim said current owners and management were not involved in the conduct.[2]
Star was rescued from administration in April 2025 by a $300 million package from US casino group Bally's and the Mathieson family.[1] Swinburne University governance expert Helen Bird had said attention would turn quickly to whether it could pay, and suggested Star may have quietly arranged funding while warning of liquidation to win a smaller penalty.[1]
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