Star Casino Hit With $260 Million Fine, Shares Drop to 13 Cents

Star Entertainment Group faces a $260 million penalty for past failures in its money laundering controls. The Federal Court issued the order on Wednesday, marking the end of a legal battle that began four years ago. The fine comes as the company struggles with financial stability and a low stock price.

Justice Cameron Moore set the penalty after reviewing evidence of systemic neglect. The judge stated that Star put profit ahead of compliance. The ruling reflects the harm caused by the company's conduct. The penalty is lower than the $400 million sought by the financial intelligence agency AUSTRAC. Star argued that a fine exceeding $100 million would force the company into liquidation.

The court found that senior management ignored warnings about high-risk gamblers. One man with known criminal links funneled hundreds of millions of dollars through the casinos. Management failed to install adequate controls to stop money laundering and counter terrorism financing. These failures occurred while the company operated in Sydney, Brisbane, and the Gold Coast.

Star must pay the fine in four equal installments over 19 months. The company's market value stands at $763 million. The penalty represents more than a third of that total. Shares closed at 13 cents on Tuesday. The stock is currently in a trading halt for up to two days. This pause allows management to address the impact of the fine on the business.

Soo Kim, the chair of Star, addressed shareholders at the annual general meeting on Tuesday. He stated that the fire is out and the rebuilding starts now. Kim noted that the majority of customers were not involved in bad behavior. He urged the company to welcome those patrons back. Kim previously led Bally's Corp, which saved Star from administration in April 2025.

The company has faced multiple legal and regulatory issues in recent years. Former head Matthias Beikir received a $700,000 fine in June. He failed to inform the board of suspicious conduct by Suncity in 2018 and 2019. Star Sydney also received $10 million in fines that same month. Those penalties covered breaches including exceeding gaming time limits and failing to vet patrons properly.