The Star Entertainment Group has been ordered to pay a penalty of A$260 million (approximately US$182 million) following Federal Court proceedings over breaches of Australia’s anti-money laundering and counter-terrorism financing laws. The ruling follows investigations into the casino operator’s activities in Queensland and New South Wales and adds to years of regulatory scrutiny surrounding its compliance practices.
Justice Moore delivered the judgment after proceedings that began in 2022. The court found that The Star had failed to maintain an adequate anti-money laundering and counter-terrorism financing (AML/CTF) programme and had not properly monitored customers to identify and manage money-laundering and terrorism-financing risks.
The breaches included inadequate checks on customer identities and sources of funds, insufficient due diligence and failures in the ongoing monitoring of customer activity.
The court also found that the casino operator had permitted third-party transactions and cash deposits without properly recording the identities of those involved. Customers continued to access private gaming rooms despite suspicious activity being observed.
According to the judgment, more than 1,200 customers were allowed to gamble through high-risk channels without sufficient AML/CTF safeguards.
Concerns over High-Risk Customers and Junket Operations
The court examined the scale of The Star’s operations involving high-risk customers and junket businesses. Revenue associated with junket operations exceeded A$1.4 billion, while profits from junkets before the COVID-19 pandemic surpassed A$100 million.
The company’s own estimates placed revenue generated from high-risk customers at approximately A$1.33 billion between November 2016 and November 2022.
Justice Moore noted that the figures illustrated the potential profitability of operating without adequate compliance controls, while clarifying that they did not directly quantify benefits obtained from illegal conduct.
Australia’s financial intelligence regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC), described the failures as systemic and serious. Chief executive Brendan Thomas said the penalty reflected the severity of the contraventions and was intended to strengthen deterrence following earlier state and federal enforcement measures.
The penalty reflects the severity of the contraventions and is intended to strengthen deterrence following earlier state and federal enforcement measures. The failures went beyond incomplete checks and reflected a broader breakdown in compliance oversight.
Brendan Thomas, Chief Executive at AUSTRAC
Wider Consequences for The Star
The penalty forms part of a longer regulatory process affecting The Star’s operations and corporate governance. The company has already faced substantial financial penalties, casino licence restrictions and external management.
Two former senior executives were also found to have breached the Corporations Act 2001 in connection with failures to manage and report money-laundering and criminal-activity risks.
The Star Sydney’s licence suspension has been extended until 2027, while its remediation programme remains under regulatory scrutiny. The Star Gold Coast has also faced continued restrictions.
The A$260 million penalty represents a major financial consequence of the court’s findings. More broadly, the case highlights the importance of effective customer due diligence, transaction monitoring and governance in Australia’s casino sector, where operators face substantial legal consequences for failures to manage financial crime risks.
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