Federal Court Orders Star Entertainment to Pay A$260 Million Over AML Breaches

^{The Star Entertainment Group operates casinos in Sydney, the Gold Coast, and Brisbane. (Photo: Lenny K Photography / Wikimedia Commons)}

The Federal Court of Australia has ordered The Star Entertainment Group to pay a penalty of A$260 million for breaching anti-money laundering and counter-terrorism financing laws. AUSTRAC, the financial intelligence agency that brought the case in 2022, announced the outcome on 28 October 2026.

The ruling follows years of upheaval at the operator, including regulatory findings that Star was unsuitable to hold its Sydney licence, and, according to AAP, a rescue by Bally's Corp in April 2025.

What the Court Found

According to the AUSTRAC statement, the court found The Star failed to maintain a compliant AML/CTF programme and failed to monitor customers to identify, mitigate, and manage money laundering and terrorism financing risks. AUSTRAC said the failings went beyond inadequate systems and controls.

The agency said more than 1,200 high-risk customers were able to gamble through channels carrying elevated money laundering risk. Those channels included limited transparency over the source of funds and cash deposits made by third parties whose identity was not recorded.

'A significant part of Star's business was dependent upon turning a blind eye to customers who presented a high ML/TF risk.' – Justice Cameron Moore, quoted in the AUSTRAC statement

How the Penalty Was Set

AUSTRAC had argued that a penalty of about A$400 million was needed. Star said any penalty above A$100 million would push it into liquidation, according to reporting by the Australian Broadcasting Corporation. Justice Moore landed between the two figures and said the penalty would have been higher without the remediation work already under way.

The judge also took account of what the company has already paid. In the passage quoted by AUSTRAC, he said Star 'has received penalties of $200 million for conduct that significantly overlaps' with this case, and that its casino licences were suspended while a manager supervised the business. Star has 19 months to pay, in four equal instalments.

AUSTRAC chief executive Brendan Thomas said that, in light of the penalties Star faced under earlier casino inquiries, the new penalty reflects the seriousness of the contraventions. He said it builds on previous state and Commonwealth fines to provide ongoing deterrence value.

Licences and Trading Remain in Focus

The decision lands while Star's licences are still under supervision. On 24 September 2026, the Queensland Government extended the deferral of the Star Gold Coast licence suspension to 31 March 2027, and extended the special manager's appointment to the same date.

In Sydney, the NSW Independent Casino Commission advised on 25 September that the Star Sydney licence suspension remains in effect, with the manager's appointment extended to 30 June 2027. Our earlier report covers how the Star Sydney suspension was extended until June 2027.

Star's quarterly report, released to the ASX on 27 October 2026, showed group EBITDA of A$12 million for the three months to 30 September 2026, up A$25 million on the same period a year earlier. The company said it expects FY27 to be the first year of net operating cash inflows, before one-off items, in more than two years.

The full penalty announcement is on the AUSTRAC website. Investors and regulators will now watch how Star funds the instalments while it works through the remaining licence conditions.