The penalty, handed down on Wednesday, follows legal action by financial crime regulator AUSTRAC. The court heard that AUSTRAC submitted a $400 million penalty would be appropriate, while Star argued that a fine greater than $100 million, payable within 12 months, would be challenging based on available liquidity options, including accessing equity markets.
Justice Moore acknowledged that Star's profitability is such that it is likely to need to raise money to pay any penalty. The company, which went into a trading halt before the judgment, has already acknowledged the existential threat the fine may pose. A rescue deal from Bally's Corporation chairman Soo Kim and chief executive Bruce Mathieson Jnr provided a $300 million package that saved Star from financial collapse last year, handing control to Kim's US casino operator Bally's and giving the Mathieson family a significant stake.
Star's troubles began in 2021, when an investigation by The Age, The Sydney Morning Herald and 60 Minutes alleged the casino operator had enabled suspected money laundering, organised crime, large-scale fraud and foreign interference in its Australian casinos for years, despite board warnings about failing anti-money-laundering controls. Subsequent inquiries led to the loss of its casino licences, a legal battle with the corporate regulator, and AUSTRAC's action over the breaches.