Ballys’ Soo Kim backs Star Entertainment after A$260m Federal Court penalty

Ballys Corporation chairman Soo Kim has publicly backed Star Entertainment’s financial recovery after the Federal Court of Australia imposed a A$260 million penalty for historical anti-money laundering and counter-terrorism financing failings. The penalty, accepted by Star after AUSTRAC initially sought A$400 million, is payable in four instalments between November 2026 and May 2028; Ballys and partner Investment Holdings Pty together hold a 61% controlling stake in Star.

Immediate financial picture

Kim told investors he does not believe the court’s decision will render Star insolvent. Star reported $12 million in group EBITDA for the first quarter of fiscal 2027, reversing a $13 million loss in the same quarter a year earlier. Combined revenue at Star’s Sydney and Gold Coast venues rose 9% versus the fourth quarter of 2026, the first sequential uplift for both locations since quarterly reporting began in September 2024.

“We do not believe the decision renders Star insolvent,” Soo Kim said. “The turnaround is progressing at a good pace. Circumstances at Star today are materially different from when we first became involved.”

Kim reiterated that Ballys’ experience operating casinos in regulated jurisdictions and the commitment of Star’s leadership are supporting the recovery.

Penalty timing and structure

The Federal Court handed down the A$260 million penalty for historical AML/CTF compliance breaches across Star’s Sydney and Queensland properties. The court-ordered payment schedule runs from November 2026 to May 2028 in four instalments. AUSTRAC had sought a larger fine — A$400 million — but Star accepted the court’s smaller penalty and its structured timetable.

Market observers had questioned Star’s liquidity and covenant position after the decision. Star disclosed a review of its credit facility agreement with WhiteHawk Capital Partners; management said it is confident the facility will remain accessible during the remediation and payment period.

Ownership and governance support

Ballys Corporation retains approximately 38% of Star, while Investment Holdings Pty holds 23%, giving the pair a combined 61% majority. Kim framed that controlling interest as a source of strategic and operational support for Star’s turnaround and remediation work.

Kim described the recovery programme as broader than short-term financial fixes, emphasising cultural and control improvements alongside commercial repairs. He said Star’s new leadership team had delivered measurable progress in a short timeframe.

Regulatory engagement and remediation progress

Regulators have continued to enforce supplementary measures while recognising remediation progress. In June, New South Wales Independent Casino Commission Chief Commissioner Philip Crawford publicly praised the “materially significant improvements” implemented under Star’s new leadership, even as the commission and other regulators imposed additional compliance fines and mandated reserves for internal upgrades.

Star accepted the Federal Court decision and confirmed it is implementing remediation measures across culture, controls and operating discipline. Management has described the programme as rebuilding the company “from the inside out.”

What stakeholders will watch next

Stakeholders will be watching four areas in the coming months: the timing and completion of the instalment payments (November 2026–May 2028), continued quarterly trading — including follow-through from the Q1 FY27 $12 million EBITDA result and 9% venue revenue uplift — the outcome of the WhiteHawk Capital Partners facility review, and regulator feedback on implemented controls. Ballys’ 61% combined stake ensures the controlling shareholders will remain central to those developments.

The company statement and financial figures were provided by Ballys Corporation and Star Entertainment following the Federal Court ruling issued on 30 October 2026.