The Star Entertainment Group has been slapped with a massive $260 million fine by the Federal Court today, following years of systemic money laundering failures that have left the casino giant’s future hanging in the balance.
The penalty, handed down by Justice Cameron Moore, marks a critical turning point in the long-running legal battle launched by Australia’s financial intelligence agency, AUSTRAC, back in 2022. The court found that Australia’s largest listed casino operator repeatedly turned a blind eye to criminal risks, most notably by maintaining dealings with Asian gambling junket Suncity despite being aware of its links to organized crime.
In his scathing judgment, Justice Moore dismissed the company’s argument that a penalty exceeding $100 million would threaten the business with liquidation. While he noted that the $400 million sought by AUSTRAC was excessive, he deemed the company’s $100 million counter-proposal insufficient.
“The contraventions are serious, and a significant penalty is warranted,” Justice Moore said, characterizing the company’s history of non-compliance as “egregious.” He explicitly rejected the notion that these failures were merely accidental, stating, “They were not mere oversights from time to time.”
The court heard that for a significant period, facilitating the movement of massive sums of money—sometimes involving individuals with clear criminal connections—became a fundamental part of the casino’s business model. Because these activities were so pervasive, Justice Moore noted that the number of individual contraventions was effectively “immeasurable.”
The fine will be split, with $195 million attributed to failures at the Sydney casino and $65 million to operations in Queensland. The payment will be spread across four installments over the next 19 months. Despite the severity of the ruling, the judge acknowledged that the total fine would have been even higher had it not been for the “significant remediation efforts” the company has since undertaken.
Star Entertainment, which owns casinos in Sydney and the Gold Coast and operates one in Brisbane, has been under intense pressure for years. The company recently faced a liquidity crisis that saw it rescued in April 2025 by a $300 million injection from the Mathieson family and US gaming giant Bally’s Corp. Justice Moore noted that given the casino’s current financial position, it is highly likely that the operator will need to raise further capital to settle this latest penalty.
The ruling follows a broader pattern of accountability for the firm. In June, a separate legal proceeding saw the company’s former CEO and its former lawyer hit with over $1.1 million in fines and long-term disqualifications from holding corporate office for their roles in the scandal.
With its licenses in both New South Wales and Queensland already suspended, this record-breaking fine serves as a final, stark warning that The Star’s “profit over compliance” culture has cost the company dearly.
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