The Star Entertainment Group has been fined A$260 million by Australia’s Federal Court after a judgment found widespread and systemic failures in the casino operator’s anti-money laundering and counter-terrorism financing controls.
The penalty, handed down on 28 October 2026, follows legal action brought by the Australian Transaction Reports and Analysis Centre, known as AUSTRAC, against subsidiaries operating the company’s Sydney and Queensland casinos. The court found that the breaches occurred over a six-year period, from November 2016 to November 2022.
Failures involving high-risk customers
Justice Moore found that Star Sydney did not properly monitor 102 high-risk customers. A further 1,088 customers who used channels considered more exposed to money laundering and terrorism financing risks were also not adequately monitored, according to the judgment.
At Star Queensland, the court identified failures involving 77 high-risk customers and another 250 customers who either used higher-risk transaction channels or were subject to exclusion orders issued in New South Wales.
| Casino operation | High-risk customers | Other customers or channels |
|---|---|---|
| Star Sydney | 102 | 1,088 |
| Star Queensland | 77 | 250 |
The findings place the company’s compliance systems at the centre of a case that has implications beyond one operator. The judgment highlighted the particular exposure of casinos to financial crime because of their substantial cash flows, the movement of international funds without a conventional cross-border transfer, and the presence of customers who may present elevated risks.
“Not worth the risk.”
That warning formed part of the court’s message to the wider casino industry. Justice Moore said Star had developed a business model dependent on ignoring warning signs linked to high-risk customers and on providing services that enabled money to be moved with little friction. The judgment described the conduct as giving rise to significant money laundering and terrorism financing risks.
A substantial penalty, but below the regulator’s request
AUSTRAC had sought a fine of A$400 million, equivalent in the report to about £212 million. The court imposed a lower amount of A$260 million, or about £137 million, after taking earlier regulatory interventions into account.
Even after that reduction, Justice Moore regarded the penalty as very significant. The court’s reasoning was that the amount should reflect the seriousness and scale of the contraventions, while sending a clear message that commercial returns cannot take precedence over obligations designed to prevent illicit finance.
- A$260 million: penalty imposed by the Federal Court.
- A$400 million: amount sought by AUSTRAC.
- 2016 to 2022: period covered by the court’s findings.
- Two casino operations: Star Sydney and Star Queensland were involved in the proceedings.
The case also underlines the responsibilities carried by entertainment businesses that operate in industries with unusually high levels of cash and international transactions. For casino groups, compliance is not limited to paperwork or internal administration: customer monitoring and transaction controls form part of the safeguards intended to identify and prevent financial crime.
The Federal Court’s judgment leaves The Star Entertainment Group facing a major financial sanction and a public finding that its controls failed across a substantial period. For other casino operators, the ruling provides a direct warning that weak oversight of high-risk customers can bring significant legal and financial consequences.
