Bally’s Corporation has backed The Star Entertainment Group’s turnaround efforts after the Federal Court of Australia imposed a A$260 million (US$182.64 million) penalty on the casino operator’s subsidiaries over historical breaches of anti-money laundering and counter-terrorism financing laws.
The penalty, payable in four instalments over 19 months, relates to conduct that occurred before Bally’s invested in The Star and before the appointment of its current board and executive leadership.
Bally’s Executive Chairman Soo Kim said the company respected the work of the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Federal Court in holding casino operators accountable for regulatory compliance. He also praised The Star’s new leadership for its progress in addressing the issues, saying the turnaround was advancing at a good pace.
AUSTRAC accused The Star of allowing 117 high-risk customers to channel billions of dollars in suspected illicit funds through its Sydney, Brisbane, and Gold Coast casinos. Documents first filed in 2022 showed that high rollers participating in junket operations gambled more than $125 billion (US$87.83 billion) between November 2016 and October 2020.
On Wednesday, Federal Court judge Cameron Moore imposed the A$260 million penalty, rejecting The Star’s proposed A$100 million fine as too low and AUSTRAC’s A$400 million request as too high.
Moore described the violations as serious and warranting a significant penalty. He noted disputes over The Star’s financial position and whether it could afford AUSTRAC’s requested penalty or any amount exceeding A$100 million (US$70.26 million). “Star put profit over compliance and did so on a large scale,” Moore said.
AUSTRAC Chief Executive Brendan Thomas said the penalty reflected the seriousness of the violations and built on previous state and federal fines to deter future misconduct. He said the court found that The Star had allowed high-risk customers to gamble without properly establishing the source of their funds, rather than simply failing to complete the required checks.
Due to deficiencies in The Star’s monitoring systems, the total amount gambled by high-risk customers remains unknown, he added. He said the company had exposed its casinos and Australia’s financial system to significant financial crime risks instead of addressing them.
Bally’s has provided strategic support to The Star under an Umbrella Consultancy Agreement, drawing on its experience in casino operations, regulatory compliance and operational transformation.
Kim said the circumstances at The Star had changed materially since Bally’s became involved, adding that the company’s expertise and the commitment of The Star’s management and employees were contributing to its recovery.
The Star’s financial performance has also improved. In the first quarter of fiscal 2027, the group reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of A$12 million (US$8.43 million), compared with a loss of A$13 million (US$9.13 million) in the same period a year earlier.
Regulatory progress has accompanied the financial improvement. In June 2026, the NSW Independent Casino Commission (NICC) acknowledged improvements under The Star’s new leadership.
NICC Chief Commissioner Philip Crawford cited the company’s revised remediation workstreams, Bally’s expertise and technological improvements in assessing its progress. He described the changes as a “materially significant improvement” in The Star’s remediation efforts.
The Star said the penalty was materially in line with the provision recognised in its 2026 financial statements. It also said the payment schedule would not affect its ability to continue as a going concern.
Bally’s said it would continue supporting The Star’s board and management as they implement the remediation plan, strengthen compliance controls, improve operating performance and rebuild trust with regulators, customers, employees and local communities.
“This turnaround is about more than financial performance,” Kim said. “It is about rebuilding the company from the inside out: its culture, its controls, its operating discipline and its relationship with regulators and the communities it serves.”
“Gaming is a privilege, not a right, and earning and maintaining that privilege requires accountability,” he continued. “We believe the leadership team at The Star understands that responsibility, and Bally’s will continue bringing its experience and resources to support them as they move the business forward.”