Soo Kim: Ballys backs Star’s financial recovery after A$260m fine

Ballys Corporation has said the A$260 million fine imposed on Star Entertainment will not render the group insolvent, and publicly expressed that support on 30 October 2026. The Federal Court of Australia ruling stems from historical anti-money laundering and counter‑terrorism financing failures; the penalty will be paid in four instalments between November 2026 and May 2028. Ballys and Investment Holdings Pty together control a 61% stake in Star — roughly 38% for Ballys and 23% for Investment Holdings Pty — and have defended the viability of the business.

Timetable and structure of the penalty

The Federal Court of Australia set the fine at A$260 million for compliance failures at Star properties in Sydney and Queensland. AUSTRAC had originally sought A$400 million; Star accepted the court’s decision in full. The payment schedule approved by the court spreads the obligation across four payments between November 2026 and May 2028.

Recent financial results at Star

Star reported group EBITDA of $12 million in the first quarter of fiscal 2027, compared with a $13 million loss in the same period a year earlier. Combined revenues from the Sydney and Gold Coast venues rose 9% versus the fourth quarter of 2026; both markets recorded sequential growth for the first time since quarterly reporting began in September 2024. The company said these results support its ongoing recovery.

Shareholder backing and management comment

Soo Kim, chairman of Ballys Corporation, issued a statement emphasising his confidence in the management team and the recovery plan:

"The issues underlying today’s decision are important, and we respect the work of AUSTRAC and the Federal Court in holding the industry to the high standards expected of casino operators. We’re equally proud of what Star’s new leadership team has accomplished in a relatively short period of time. Fortunately for us, the turnaround is progressing at a good pace. Circumstances at Star today are materially different from when we first became involved. Bally’s has decades of experience operating casinos in highly regulated jurisdictions. We believe expertise, combined with the commitment of Star’s leadership and team members, is making a meaningful difference. There is more work ahead, but we remain confident in the direction of the business. We do not believe the decision renders Star insolvent."

Ballys and its partner Investment Holdings Pty control a combined majority stake of 61% in Star, which the companies say provides strategic and operational support during the restructuring.

Regulatory remediation and access to finance

Star has progressed corporate remediation and strengthened internal controls; in June, Philip Crawford, Chief Commissioner of the New South Wales Independent Casino Commission, praised the "materially significant" improvements implemented under the new management, while regulators continued to impose complementary penalties and require provisions for internal upgrades. Star also confirmed it is reviewing its credit‑line agreement with WhiteHawk Capital Partners, and management remains confident the facility will remain available.

Focus on culture and controls

Kim stressed that the transformation goes beyond numbers: it focuses on rebuilding corporate culture, controls and relationships with regulators and communities. The chairman insisted that gambling is a privilege that requires responsibility and that the programme of internal improvement will continue.