Federal Court fines The Star A$260m for AML breaches 2016–2022
Payments split between Star Sydney and Star Queensland; AUSTRAC investigation began in 2022
Key Takeaways
- The Federal Court imposed a total fine of A$260 million on The Star Entertainment Group for AML/CTF breaches between November 2016 and November 2022.
- Star Sydney is ordered to pay A$195 million (A$48.75 million due before 25 November) and The Star Queensland A$65 million (A$16.25 million due on 25 November).
- AUSTRAC announced the investigation and it was ongoing from November 2022 prior to the Court’s judgment.
- The Court recorded junket income exceeding A$1.4 billion, pre‑COVID junket profits over A$100 million, and estimated high‑risk customer receipts of about A$1.33 billion.
The Star Entertainment Group was fined by the Federal Court of Australia a total of A$260 million for breaches of anti-money laundering and counter‑terrorism financing laws between November 2016 and November 2022. The Court ordered that Star Sydney pay A$195 million, of which A$48.75 million is payable before 25 November; The Star Queensland must pay A$65 million, with A$16.25 million also due on 25 November. The investigation was announced by AUSTRAC and was ongoing from November 2022.
Findings of the Court and AUSTRAC
The Court found that The Star did not maintain a compliant AML/CTF program and failed to monitor customers to identify money‑laundering and terrorism financing risks during the period in question. AUSTRAC identified failures in customer identity verification, controls over the source of funds, background checks and the supervision of high‑risk customer behaviour.
"The Court found that The Star did not merely fail to complete appropriate checks. It allowed high‑risk customers to gamble without adequately establishing the source of their funds and prioritised profit over compliance on a large scale," said Brendan Thomas, CEO of AUSTRAC.
The judgment adds that The Star permitted the operation of a private casino within its venue without adequate oversight, continued to serve customers excluded in other states and allowed junkets to conduct highly suspicious incidents without intervening controls.
Financial data cited by the Court
The Court recorded figures relating to junket activity and high‑risk customers. Justice Moore said income from junkets exceeded A$1.4 billion and that junket profits in the years before COVID exceeded A$100 million. The Court also cited that, by The Star’s own calculation, high‑risk customer receipts in the period November 2016 to November 2022 were approximately A$1.33 billion.
"The Star continued to receive and benefit from money that the available evidence suggested was, with a high degree of probability, proceeds of criminal activity and was being laundered," Justice Moore stated.
Company status
The Star Entertainment had not issued a public comment on the court decision at the time of publication. AUSTRAC announced the investigation in November 2022 and the Federal Court judgment was published on Wednesday.
Frequently Asked Questions
How much must Star Sydney pay and is there a near‑term deadline?
Star Sydney must pay A$195 million in total, with A$48.75 million of that sum required to be paid before 25 November under the Federal Court order.
What period do the breaches cover according to the ruling?
The breaches relate to the period between November 2016 and November 2022, which the Court identified as lacking adequate AML/CTF oversight.
Who initiated the investigation and when did it begin?
AUSTRAC announced the investigation, which began in November 2022 and remained in progress prior to the Court’s published judgment.
What figures did the Court associate with junket activity?
The Court recorded that junket income exceeded A$1.4 billion, junket profits in the years before COVID exceeded A$100 million, and that The Star calculated high‑risk customer receipts at about A$1.33 billion.
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Gonzalo Marín
Industry Deals Correspondent
Gonzalo Marín covers the corporate deal flow of gambling — operator strategy, M&A, regulated-market entries, and product launches. The reports open with the transaction, cite companies, valuations, and jurisdictions exactly as released, and keep the announcement apart from its actual effect. When a Latin American operator raises capital or a European brand lands in the region, Gonzalo Marín reports who signs, for how much, and on what terms.
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