Star Casino fined $260 million for historical money laundering violations

Australia's largest listed casino company, The Star Entertainment Group, has been fined $260 million by the Federal Court for historical repeated money laundering violations that led to the suspension of its casino licences in NSW and Queensland. The penalty, handed down by Justice Cameron Moore, came a day after shareholders met for the company's annual meeting in Sydney. Australia's financial intelligence agency, AUSTRAC, launched legal action against Star in 2022, accusing it of failing to adequately address money-laundering risks from its dealings with Asian gambling junket Suncity and its funder, and of continuing to deal with them despite becoming aware of reports of criminal links. Star, which owns casinos in Sydney and the Gold Coast and runs one in Brisbane, had said a penalty steeper than $100 million could force it into liquidation. Justice Moore said the $100 million penalty sought by Star was too low, but the $400 million penalty sought by AUSTRAC was too high. He emphasized the need to deter Star from putting profit over compliance with anti-money laundering laws, and noted the company's financial position, stating that the fine would have been higher if not for significant remediation efforts. He ordered $195 million of the penalty to be attributed to conduct in Sydney and $65 million to Queensland, to be paid in four instalments over 19 months. The court heard that a man with known criminal links funnelled hundreds of millions of dollars through the casino. Justice Moore described the conduct as "egregious" and not mere oversights. In June, Star's former CEO and lawyer were fined over $1.1 million and disqualified from holding corporate office. US gaming giant Bally's Corp and the Mathieson family put forward a $300 million rescue package that saved the business from administration in April 2025. AUSTRAC CEO Brendan Thomas said the penalty reflects the seriousness of the contraventions and that AUSTRAC will not tolerate companies putting profit over their obligations to the Australian community. Independent MP Andrew Wilkie welcomed the penalty with a one-word statement: "Good." Swinburne University governance expert Helen Bird said attention would now turn to whether Star can afford the penalty, and if not, it may enter administration. Star shares were placed on a trading halt earlier on Wednesday ahead of the court's decision.

(Source：Abc)