The Federal Court of Australia on October 28 ordered Star Entertainment Group, the operator of The Star casinos, to pay an A$260 million fine (about $182 million at the October 28 exchange rate) for breaches of Australia's anti-money laundering and counter-terrorism financing law. That is according to an AUSTRAC media release. The regulator filed the case in 2022.
Judge Cameron Moore, AUSTRAC said, found that The Star did not maintain an AML/CTF program compliant with the law and did not monitor customers to assess risk. The court pointed to inadequate checks of identity and source of funds, as well as the acceptance of money from third parties without recording their details. Customers with suspicious activity kept access to private gaming rooms.
More than 1,200 customers gambled through high-risk channels without adequate safeguards. Revenue linked to junket operations exceeded A$1.4 billion, and by The Star's own estimates, income from high-risk customers from November 2016 to November 2022 was about A$1.33 billion. The court noted that these figures show the possibility of profiting from non-compliance but do not measure the gain from the breaches themselves.
AUSTRAC had sought a fine of up to A$400 million. The A$260 million figure, the judge said, takes into account about A$200 million in fines The Star previously paid after earlier investigations, license suspensions and the appointment of an external administrator.
AUSTRAC chief Brendan Thomas said the fine "reflects the seriousness of the breaches" and adds a deterrent effect to earlier sanctions. He said the company allowed high-risk customers to gamble without establishing where their money came from.
Earlier, on October 27, Queensland once again pushed back the suspension date of The Star Gold Coast's license, to March 31, 2027. The AUSTRAC release does not specify the payment deadline or procedure for the fine.
