Star hit with $260m fine for money laundering breaches

October 28, 2026 — 10:54amA Federal Court judge found Star Entertainment contravened anti-money laundering and counter-terrorism financing laws and hit the casino operator with a $260 million fine on Wednesday.Star, which went into a trading halt before the judgment was released, argued in court last year that a fine of more than $100 million may exceed its financial means to pay.A rescue deal from Bally’s Corporation chairman Soo Kim has kept Star afloat for now.Dominic LorrimerJustice Cameron Moore was damning about Star’s conduct.“In effect, Star put profit over compliance and did so on a large scale,” he said in court.Moore also acknowledged that the casino operator may need to raise further cash to pay the fine.“Star’s profitability is such that it is likely to need to raise money to pay any penalty,” he said.Star has acknowledged in its most recent annual report the existential threat the fine may pose for its business.“AUSTRAC submitted that a penalty of $400 million would be appropriate while The Star submitted that a penalty of greater than $100 million, payable in the 12 months following the hearing, would be challenging based on available liquidity options, including accessing equity markets. The Star is awaiting the court’s judgment,” it told investors in August.New chairman Soo Kim, and chief executive Bruce Mathieson Jnr, led the $300 million rescue package that saved Star from financial collapse last year. If the fine is too hefty, the company could end up in administration.The rescue handed control of the casino business to Kim’s US casino operator Bally’s and the Mathieson family pub empire also emerged with a significant stake after contributing $100 million to the deal.Star’s troubles started in 2021, when an investigation by The Age, The Sydney Morning Herald and 60 Minutes alleged Star had enabled suspected money laundering, organised crime, large-scale fraud and foreign interference in its Australian casinos for years, even though its board had been warned its anti-money-laundering controls were failing.Further inquiries led to the loss of its casino licences, a legal battle with the corporate regulator, as well as legal action by financial crime regulator AUSTRAC over the money-laundering breaches.More to come.The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.From our partners