Bally’s Responds as Federal Court Sets $260 Million AUSTRAC Penalty for The Star Entertainment Group
Bally’s Corporation has commented on the Federal Court of Australia’s decision in the AUSTRAC proceedings against subsidiaries of The Star Entertainment Group, a case tied to historical violations of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. In its statement on 28 October 2026, the company noted that the Federal Court imposed a penalty of $260 million, payable in four installments over 19 months.
Bally’s framed the decision as the closing of a historical chapter. The company said the conduct underlying the proceedings occurred before its investment in The Star and before the appointment of The Star’s current board and executive leadership, and paired that with figures intended to show the operating business is already recovering.
The Star AUSTRAC penalty and the Federal Court’s $260 million decision
A $260 million penalty is a material number in any casino market, and it sets a value on one of Australia’s most significant casino anti-money laundering proceedings. The Federal Court set the penalty as payable in four installments over 19 months. Bally’s said it supports The Star’s acceptance of the decision and recognised the seriousness of the historical conduct underlying the proceedings.
The company also welcomed the opportunity for The Star, under its new leadership, to continue demonstrating the operational, cultural and regulatory changes that have taken place across the business.
Bally’s role at The Star under the Umbrella Consultancy Agreement
Since becoming involved with The Star, Bally’s has provided strategic support to the management team under an Umbrella Consultancy Agreement, bringing expertise in casino operations, regulatory compliance and operational transformation to The Star’s remediation and turnaround efforts.
Soo Kim, executive chairman of Bally’s Corporation and chairman of The Star Entertainment Group, set out the position directly.
“The issues underlying today’s decision are important, and we respect the work of AUSTRAC and the Federal Court in holding the industry to the high standards expected of casino operators,” Kim said. “We are equally proud of what The Star’s new leadership team has accomplished in a relatively short period of time. They inherited an extraordinarily challenging situation and have approached the turnaround with discipline, urgency and a clear understanding that strong casino operations and strong regulatory compliance must go hand in hand.”
The Star’s fiscal 2027 EBITDA and revenue turnaround
Bally’s pointed to recent financial performance as tangible evidence of the turnaround. For the first quarter of fiscal 2027, The Star reported Group EBITDA of A$12 million, representing a A$25 million improvement from negative A$13 million in the prior-year period. Combined revenue from The Star Sydney and The Star Gold Coast increased 9% compared with the fourth quarter of fiscal 2026. The release described that as the first time the properties have reported such growth since The Star’s quarterly reporting obligations commenced in September 2024.
Kim addressed the direction of the business and its financial standing.
“Fortunately for us, the turnaround is progressing at a good pace. The circumstances at The Star today are materially different from when we first became involved. Bally’s has decades of experience operating casinos in highly regulated jurisdictions, and we believe that expertise, combined with the commitment of The Star’s leadership and team members, is making a meaningful difference. We are thankful for the constructive engagement of regulators throughout this process and proud of the progress being made. There is more work ahead, but we remain confident in the direction of the business and do not believe today’s decision renders The Star insolvent,” Kim said.
The operational progress has been accompanied by regulatory recognition. In June 2026, the NSW Independent Casino Commission noted the progress under The Star’s new leadership. NICC Chief Commissioner Philip Crawford said the regulator had seen “considerable progress at The Star under their new leadership” and, citing The Star’s revised remediation workstreams, Bally’s expertise and technological improvements, concluded there had been a “materially significant improvement” in The Star’s remediation progress.
The Star’s going-concern position and WhiteHawk credit facility
The Star separately stated that the $260 million penalty is materially in line with a provision previously recognised in its 2026 financial statements, and that it does not believe payment under the 19-month instalment schedule will affect the Group’s ability to continue as a going concern.
The penalty constitutes a review event under The Star’s credit facility agreement with WhiteHawk Capital Partners. The Star has stated it is engaging with WhiteHawk and remains confident the facility will continue to be available.
What The Star’s AUSTRAC decision signals for casino operators
Bally’s is working to separate an inherited, historical liability from the operating business it is now steering, and it is using EBITDA, revenue growth and regulator commentary to make that case. For an industry where incoming investors increasingly inherit unresolved compliance obligations, the handling of this moment is a live case study in whether a penalty can be absorbed while a recovery continues.
Kim closed on the theme Bally’s wants associated with the business.
“This turnaround is about more than financial performance. It is about rebuilding the company from the inside out: its culture, its controls, its operating discipline and its relationship with regulators and the communities it serves. Gaming is a privilege, not a right, and earning and maintaining that privilege requires accountability. We believe the leadership team at The Star understands that responsibility, and Bally’s will continue bringing its experience and resources to support them as they move the business forward,” Kim said.
With the penalty value now set and the WhiteHawk engagement ongoing, the next set of quarterly figures will show whether the turnaround Bally’s describes continues to build.
Source: Bally’s Corporation
