The Star Entertainment Group fined A$260 million for AML breaches

The Federal Court of Australia has imposed an A$260 million (US$183 million) penalty on subsidiaries of The Star Entertainment Group for historical anti-money laundering and counter-terrorism financing breaches. The fine, resulting from a civil proceeding initiated by AUSTRAC, is split between The Star Sydney (A$195 million) and The Star Gold Coast (A$65 million).

The penalty has triggered a review event in a credit agreement with WhiteHawk Capital Partners, a major lender that previously agreed to a US$390 million refinancing package. Despite this, The Star stated it remains confident in its credit line and that the payment schedule, spread over 19 months, will not affect its ability to continue operating as a going concern.

Bally’s Corporation has reaffirmed its support for the company through a consultancy agreement focused on regulatory compliance and operational changes. The Star reported an improvement in quarterly EBITDA to A$12 million, compared to a loss of A$13 million in the previous year.