Two Star Entertainment casino subsidiaries must pay a combined A$260 million for breaches of Australian anti-money laundering and counter-terrorism financing laws, the Federal Court of Australia ordered Oct. 28. Bally's Corporation, an investor in Star, says it will continue supporting the group's turnaround.
The court ordered A$195 million against Star Sydney and A$65 million against Star Queensland. The combined payments are due in four A$65 million installments, on Nov. 25, 2026, May 25 and Nov. 25, 2027, and May 25, 2028.
AUSTRAC, Australia's financial-intelligence regulator, said the court found Star failed to maintain a compliant program and monitor high-risk customers. Its chief executive, Brendan Thomas, said the monitoring failures mean the regulator cannot know how much money those customers moved through the casinos.
In its Oct. 29 stock-exchange filing, Star accepted the penalty and said its size was materially in line with the provision in its financial statements. It said the penalty triggers a review under its WhiteHawk Capital Partners credit facility. Star was discussing the matter with WhiteHawk and said it expected the facility to remain available.
In a statement issued from Providence Oct. 29, Bally's said the conduct preceded its investment and the current leadership. Soo Kim is executive chairman of Bally's and chairman of Star.
The judge found that Star would likely need to raise money to pay a penalty and allowed installments in light of its financial position. Parts of the public judgment concerning that position are redacted. Star's statement that it expects financing to remain available is the company's assessment.
AUSTRAC penalty announcement; Bally's statement; Star's Oct. 29 exchange filing; Federal Court judgment and payment orders.