Federal Court Orders The Star to Pay $260 Million in AUSTRAC Case
The Federal Court ordered The Star to pay AU$260 million for anti-money laundering failures, the first AUSTRAC penalty set after a contest.
Key facts
The Federal Court of Australia has ordered The Star Entertainment Group's Sydney and Queensland casino companies to pay AU$260 million for breaking the country's anti-money laundering laws. The judgment, on 28 October 2026, decides the civil penalty case that AUSTRAC, Australia's financial intelligence agency, started in November 2022.
- Justice Cameron Moore set the amount after AUSTRAC and The Star argued for different figures.
- AU$195 million falls on The Star Pty Limited, the Sydney casino company, and AU$65 million on The Star Entertainment Qld Limited.
- AUSTRAC sought AU$400 million. The Star argued for AU$100 million.
- The penalty is payable in four instalments over 19 months, and The Star accepted it on 29 October.
- Separately, Queensland deferred The Star Gold Coast's 90-day licence suspension to 31 March 2027 on 24 September.
What did the Federal Court order The Star to pay?
Justice Cameron Moore handed down the judgment on Wednesday 28 October 2026. AUSTRAC had sued two subsidiaries of the group: its Sydney casino company and its Queensland casino company.
The court ordered AU$195 million against the Sydney company and AU$65 million against the Queensland one.
The judge set the figure himself. The Star had admitted that its anti-money laundering program was deficient, but it and AUSTRAC could not agree on a penalty. Lawyers Weekly reported that this was the first time the Federal Court had to rule between conflicting penalty submissions in an AUSTRAC case.
The Star told the ASX on 29 October that it accepts the penalty, payable in four instalments over 19 months. Lawyers Weekly reported that the instalments fall between 25 November 2026 and 25 May 2028.
The company said the amount is materially in line with the provision in its 2026 financial statements. It added that paying in instalments will not affect its ability to continue as a going concern.
The penalty does trigger a review event under The Star's loan facility with WhiteHawk Capital Partners. The Star said it is talking to the lender and is confident the facility will stay available.
Chairman Soo Kim said the current owners and managers "had nothing to do with the actions that gave rise to the proceedings" and that the company commends the work of AUSTRAC and the Federal Court.
How did the judge arrive at AU$260 million?
AUSTRAC asked for AU$400 million. The Star argued that anything above AU$100 million could push it into liquidation, ABC News reported. Justice Moore found the first figure too high and the second too low.
He weighed deterrence against The Star's finances. He also took into account AU$200 million in penalties The Star had already received for conduct that, in his words, "significantly overlaps" with this case, along with the suspension of its licences and the managers placed over its casinos.
AUSTRAC said the penalty follows other significant penalties and regulatory action imposed on The Star after the Queensland and New South Wales casino inquiries. Neither AUSTRAC nor the reports of the judgment say which penalties make up the AU$200 million.
The judge said the penalty would have been higher without the remediation work now under way. He also said The Star will likely need to raise money to pay it, according to ABC News.
AUSTRAC's two earlier casino cases ended differently. In both, the operator and AUSTRAC agreed a figure and asked the court to approve it.
Casino operator | Penalty | Ordered | How the amount was set |
|---|---|---|---|
Crown Melbourne and Crown Perth | AU$450 million | July 2023 | Agreed with AUSTRAC |
SkyCity Adelaide | AU$67 million | June 2024 | Agreed with AUSTRAC |
The Star, Sydney and Queensland | AU$260 million | October 2026 | Set by the judge after a contest |
What did the court find The Star did wrong?
The court found The Star had no compliant anti-money laundering and counter-terrorism financing program, and did not monitor its customers well enough to manage the risk of money laundering, AUSTRAC said.
It failed to verify customer information and where customers' money came from, to carry out proper due diligence and to watch customer activity.
More than 1,200 customers could gamble through channels with a higher risk of money laundering. On The Star's own figures, high-risk customers brought in about AU$1.33 billion in revenue between November 2016 and November 2022. The court noted that this is not a measure of what The Star gained from the breaches.
"The contraventions are serious, and a significant penalty is warranted," Justice Moore said. He called the conduct egregious and added: "It is important that Star be deterred from ever putting profit over AML/CTF compliance."
AUSTRAC chief executive Brendan Thomas said the court found that The Star "did not simply fail to complete the right checks". He went on: "Due to The Star's admitted deficiencies in monitoring, we cannot know how much money high-risk customers pumped through its casinos."
Why was the Gold Coast licence suspension deferred again?
Queensland has its own sanction waiting. On 24 September 2026 the state government deferred the 90-day suspension of The Star Gold Coast's casino licence to 31 March 2027. The suspension was due to start on 30 September.
The government based the decision on the August report and supplementary advice of special manager Nicholas Weeks. Weeks found The Star had made significant progress on its remediation, with several priority matters still in progress. His own appointment now also runs to 31 March 2027.
"Queenslanders can have full confidence that we will take immediate action if The Star fails to deliver on its obligations," Attorney-General Deb Frecklington said.
The suspension has never started. Queensland ordered it in December 2022, together with AU$100 million in fines and the special manager, and has moved its start date six times since, according to the Office of Liquor and Gaming Regulation.
Decision date | Suspension due to start |
|---|---|
9 December 2022 | 1 December 2023 |
24 November 2023 | 31 May 2024 |
16 May 2024 | 20 December 2024 |
5 December 2024 | 31 March 2025 |
17 March 2025 | 30 September 2025 |
15 September 2025 | 30 September 2026 |
24 September 2026 | 31 March 2027 |
The early deferrals also covered Treasury Brisbane, which closed on 25 August 2024, four days before The Star Brisbane opened. The new Brisbane casino's licensee is not under disciplinary action but is bound by The Star's remediation plan.
What it means for The Star's casinos and visitors
The Sydney and Gold Coast casinos stay open. In Sydney, manager Nick Weeks holds the licence until 30 June 2027 at the latest, after the NSW regulator extended the suspension in September. On the Gold Coast, the casino keeps operating while the special manager watches its remediation.
When the NSW Independent Casino Commission made that decision, it named the undecided AUSTRAC case as one of two open matters. That case now has an answer. The ruling does not settle the other, which was filling critical leadership and governance roles at the group.
For players outside Australia, the case shows what anti-money laundering rules ask of a licensed casino: know who the customer is, check where their money comes from, and watch for unusual play. Licensed online casinos run the same kind of checks, which is why they ask for ID and sometimes for proof of where deposits come from.
Online casino games cannot legally be offered to people in Australia, so land-based venues such as The Star stay at the centre of the country's casino oversight.
Frequently Asked Questions
The amount was not agreed in advance. AUSTRAC sought AU$400 million and The Star argued for AU$100 million, so Justice Cameron Moore set it at AU$260 million. The Star accepted the penalty in an ASX announcement on 29 October 2026.
No. Its 90-day licence suspension has been deferred to 31 March 2027, and the casino keeps operating while special manager Nicholas Weeks oversees its remediation.
In four instalments over 19 months. The Star says the amount is in line with the provision it already booked and will not affect its ability to continue as a going concern, though it triggers a review of its WhiteHawk loan facility.
Yes. The NSW Independent Casino Commission extended the suspension until 30 June 2027 at the latest, and the casino runs under manager Nick Weeks.
AUSTRAC is Australia's financial intelligence agency and its anti-money laundering regulator. Casinos must run a compliant program under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, and AUSTRAC can seek civil penalties in the Federal Court when they do not.
Paolo Pellegrini is Casino Adventurer's news editor, based in Rome, where he was born and raised. He covers the stories shaping the online gambling industry, from new regulations and tax changes to market openings and major deals, and always explains what they mean for players. He's naturally curious and starts every morning with the news and a strong espresso. Outside work, he's a lifelong AS Roma fan and loves cooking for friends on Sundays.
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