Star chairman says $260m penalty doesn’t push them over the brink
Star Entertainment’s board is weighing whether it can afford a $260 million fine, after the Federal Court found the casino operator breached anti-money laundering and counter-terrorism financing laws.
Chairman and major shareholder Soo Kim told the Australian Financial Review (AFR) the penalty “definitely doesn’t draw us over the brink ... we do not believe that this renders us insolvent.”
Speaking at the group's annual general meeting on Tuesday, Kim predicted that the "fire is out".
"I didn't come here to say 'mission accomplished'," Kim said.
"I came here to say, the fire is out, and now the rebuilding starts."
He did not say how the fine would be funded.
The company told the court last year that paying a penalty above $100 million within 12 months would be challenging. Financial crime regulator AUSTRAC had argued for a $400 million penalty.
Justice Cameron Moore was critical of the operator’s conduct. “In effect, Star put profit over compliance and did so on a large scale,” he said.
He acknowledged the company may need to raise capital to pay. “Star’s profitability is such that it is likely to need to raise money to pay any penalty,” Moore said.
Moore said the penalty would have been higher but for Star’s significant remediation work and the fines it had already paid for conduct that “significantly overlaps” with the AUSTRAC case.
He said the ruling needed to send a message to the wider industry. “It is important that other entities are sent the message that conduct of the sort engaged in by Star will attract a significant penalty and is not worth the risk,” Moore said.
“However, it is also necessary to take into account what has happened to Star since the relevant period, as well as Star’s financial position.”
Workforce and supplier concerns
The United Workers Union, which represents thousands of Star employees, has called for the fine to be reviewed if it threatens jobs.
“Nobody is suggesting that serious compliance failures should go unpunished. But accountability must not come at the expense of thousands of workers who had no part in those failures,” UWU director Pat O’Donnell said.
“The uncertainty at Star over the years has caused enormous anxiety for our members, their families and the broader network of hospitality businesses that depend on these venues. It would be devastating if this uncertainty were to continue ricocheting through their lives.”
Rescue deal and background
Star’s annual report has flagged the fine as an existential risk to the business. If the penalty proves too heavy, the company could end up in administration.
A $300 million rescue package led by Kim and chief executive Bruce Mathieson Jnr saved Star from financial collapse last year. The deal handed control to Kim’s US operator Bally’s, while the Mathieson family pub group took a significant stake after contributing $100 million.
At Tuesday’s annual meeting, Kim said: “We look forward to seeing the process play out and ultimately dealing with whatever the ramifications are and moving on.”
Star’s problems date back to 2021, when an investigation by The Age, The Sydney Morning Herald and 60 Minutes alleged the company had enabled suspected money laundering, organised crime, fraud and foreign interference. The fallout included the loss of its casino licences, a legal fight with the corporate regulator and the AUSTRAC action.
Joanthan Jackson, 28th October 2026
