The Star Entertainment Group has accepted the A$260 million civil penalty imposed over anti-money-laundering and counter-terrorism-financing failures, while warning that the size and instalment terms have triggered a review event under its WhiteHawk Capital Partners credit facility.
As we reported on Oct. 28, the Federal Court imposed the penalty after finding widespread compliance failures at the group’s Sydney and Queensland operations. The court allocated A$195 million to Sydney conduct and A$65 million to Queensland conduct.
The company said the penalty was materially in line with the provision recorded in its 2026 financial statements. It is payable in four instalments over 19 months, beginning with A$65 million due by Nov. 25, followed by payments in May and November 2027 and May 2028.
The Star said it was engaging with WhiteHawk and remained confident the facility would remain available.
The three-year WhiteHawk facility, signed in May, totals US$390 million, or about A$540 million, and replaced the group’s previous A$400 million syndicated loan. It requires minimum liquidity of A$50 million during its first year after financial close, rising to A$75 million between months 12 and 18, and A$100 million thereafter.
The Star separately said payment under the court-mandated schedule would not affect its ability to continue as a going concern. That assertion follows an earlier warning that a penalty above A$100 million could force the company into liquidation, while AUSTRAC had sought A$400 million. Justice Cameron Moore concluded that Star’s proposed A$100 million penalty was too low and the regulator’s proposed amount too high.
The group recorded a statutory net loss of about A$307 million in the 2026 financial year and held A$267 million in cash at June 30. Ernst & Young had identified the then-unknown size and timing of the AUSTRAC penalty, casino-licence suitability, debt covenants and transactional banking arrangements as going-concern risks in the company’s accounts.
AUSTRAC said the court found that Star had not maintained a compliant AML/CTF programme and had failed to adequately monitor customers, including more than 1,200 people who gambled through channels carrying elevated financial-crime risks. The proceedings concerned historical contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 by The Star Pty Limited and The Star Entertainment Qld Limited.
The Star also issued about 105.9 million new shares at A$0.1123 each to Bally’s Star Holdings and Investment Holdings Pty Ltd to settle interest owed on convertible notes and subordinated debt.
