The company also has a considerable inventory of hotel rooms and operates significant event space, particularly on the Gold Coast and – for now, at least – in Brisbane.
“The court found The Star did not simply fail to complete the right checks,” said AUSTRAC CEO Brendan Thomas.
“It allowed high-risk customers to gamble without properly establishing where their money came from and put profit over compliance on a large scale.
“The Star allowed junkets to engage in highly suspicious incidents without intervening controls and despite its concerns about these activities, and the known risks associated with junkets, it allowed ongoing access to its private gaming rooms.”
The Star’s fine is significantly smaller than the $450 million penalty handed to Crown Resorts for similar issues in 2023. AUSTRAC proposed a $400 million fine for The Star in 2025, while The Star told the court that it would be challenging for it to pay more than $100 million within a 12-month period at the time.
Its liquidity issues have already had a substantial impact on The Star’s business events offering. Last year it sold its Event Centre at The Star Sydney to Foundation Theatres, who intend to turn the spaces into live entertainment venues in the years ahead.
It has also sold its stake in Queen’s Wharf where The Star Brisbane and its Events Centre are located. It remains unclear how long The Star will continue to operate offerings in the precinct.
However, as part of the deal to exit Queen’s Wharf, The Star is set to take full ownership of The Star Gold Coast, which has substantial event space and a healthy hotel room inventory, with more to come – Hyatt offering Andaz Gold Coast will open in the precinct before the end of the year. The Star Gold Coast also has an approved master plan which could see the property’s hotel stock climb to 3,000 rooms.
In addition to the $260 million fine announced this week, The Star has already been fined by regulators in both New South Wales and Queensland – to the tune of $100 million in each state. The New South Wales Independent Casino Commission also fined The Star a further $10 million in June this year.
In responding to the announcement of the $260 million fine today, The Star Entertainment Group’s board chair, Soo Kim, distanced the current iteration of the business from the one whose conduct led to the fine.
“Given that the current ownership and management team had nothing to do with the actions that gave rise to the proceedings, we commend the work of AUSTRAC and the Federal Court,” said Kim.
“The Star looks forward to fostering a positive relationship with AUSTRAC and to demonstrating that The Star today has the right leadership, internal culture and operational processes to eliminate the kind of behaviours that the penalty is meant to dissuade.
“I noted at our AGM on 27 October 2026 that gaming is a public private partnership, and that we operate by privilege rather than by right.
“We agree with the public policy objective, that Australia is no place for financial crime and that our casinos are at the forefront of the industry in stamping out unwanted criminal activity.
“It is great to get a determination yesterday and add this to the list of challenges The Star, under its new board and leadership team, has navigated.”
The fine is to be paid in four instalments over 19 months, with The Star noting that the provision it had made for the penalty was “materially in line” with the fine issued and that paying the penalty would not impact on The Star’s viability as a business, which was a previous concern.
The Star’s share price has risen since the fine was announced.
