The penalty
The Star, which runs casinos in Australia, told the stock exchange on 29 October that the Federal Court had given its judgment the day before. The case was brought by AUSTRAC against two Star subsidiaries: The Star Pty Limited and The Star Entertainment Qld Limited.[1] AUSTRAC is the Australian government's financial intelligence agency, which monitors financial transactions for money laundering.[2]
The proceedings concerned historical breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. Star accepts the penalty of A$260 million, to be paid in four instalments over 19 months.[1]
What it means for the company
Star had already booked a provision for the case in its 2026 financial statements, and says the penalty is "materially in line" with it. Star does not expect paying it in the instalments the court set to affect its ability to continue as a going concern.[1]
The size of the penalty and its payment terms count as a "review event" under Star's credit facility with WhiteHawk Capital Partners. Star says it is talking to the lender and is confident the facility will remain available.[1]
Its chairman, Soo Kim, said the current owners and managers "had nothing to do with the actions" behind the case. He added that the company operates "by privilege rather than by right".[1]
Sources
- The Star Entertainment Group Limited (Australia) — AUSTRAC civil penalty proceedings decision (ASX announcement, PDF, 29 October 2026, English). The judgment and the companies concerned, the penalty and instalments, the provision, the going-concern statement, the credit facility and the chairman's statement.
- Wikipedia — AUSTRAC (English). What AUSTRAC is.
