In a recent development, Star Entertainment’s future has once again been cast into doubt as AUSTRAC pursues a hefty AU$400 million penalty against the embattled operator. The ongoing civil penalty proceedings, initiated by AUSTRAC in 2022, allege significant anti-money laundering (AML) violations by Star and its entities over a period of several years.
The investigation has shed light on a range of AML shortcomings within Star’s operations, particularly in relation to its dealings with Chinese-linked junket operators, including the notorious Suncity Group. AUSTRAC has highlighted concerns regarding inadequate reporting protocols, lack of managerial oversight, and insufficient due diligence checks, among other issues.
The agency has specifically called out the substantial turnover generated by Suncity junkets at Star Sydney and the unauthorized operations conducted at Star Queensland, proposing a staggering AU$400 million fine. This penalty, if imposed, could have severe implications for Star Entertainment, which has been teetering on the edge of collapse for some time.
Despite recent efforts to secure a lifeline through a $300 million takeover offer from Bally’s Corp and billionaire Bruce Mathieson, Star’s financial woes persist. The looming threat of a massive AUSTRAC fine adds another layer of uncertainty to the company’s already precarious situation, raising questions about the viability of the proposed takeover deal.
As Star Entertainment navigates these turbulent waters, stakeholders are closely monitoring the unfolding developments and awaiting further clarity on the potential repercussions of AUSTRAC’s enforcement actions. The future of one of Australia’s leading gaming operators hangs in the balance as regulatory challenges continue to mount.