Bally’s supports The Star turnaround after A$260M fine

Bally’s says it will keep backing The Star Entertainment Group after the Federal Court of Australia ordered the casino operator’s subsidiaries to pay a A$260 million (US$182.6 million) penalty for past breaches of anti-money laundering and counter-terrorism financing laws.

Justice Cameron Moore set the amount on October 28. He found The Star’s offer of A$100 million too low and AUSTRAC’s call for A$400 million too high.

Moore said:

“Star put profit over compliance and did so on a large scale.”

The Star will pay the penalty in four installments over 19 months.

AUSTRAC’s case centered on 117 high-risk customers it said moved billions of dollars in suspected illicit funds through The Star’s casinos in Sydney, Brisbane and the Gold Coast. The breaches happened before Bally’s invested in the company and before the current board and executives took over.

Bally’s has been sharing its casino and compliance experience with The Star under an Umbrella Consultancy Agreement.

Executive Chairman Soo Kim said the turnaround was moving at a good pace, adding:

“Gaming is a privilege, not a right.”

The Star reported EBITDA of A$12 million for the first quarter of fiscal 2027, compared with a A$13 million loss a year earlier. In June, the NSW Independent Casino Commission called its remediation progress a materially significant improvement. The Star said the penalty matched the provision in its 2026 accounts and would not affect its ability to continue as a going concern.