Star Entertainment faces potentially crippling fine as court prepares verdict

Star Entertainment is awaiting a Federal Court ruling that will determine the size of the penalty for multiple anti-money-laundering violations that resulted in the loss of its NSW and Queensland casino licences. AUSTRAC has recommended a $400 million fine, whereas Star contends that a sum exceeding $100 million would be difficult to meet given its current cash position. Justice Cameron Moore is slated to deliver the decision on Wednesday, a day after the company’s annual general meeting in Sydney where shareholders will meet new chairman Soo Kim and chief executive Bruce Mathieson Jnr, the architects of last year’s $300 million rescue package.

The rescue transferred operational control to Bally’s and gave the Mathieson family a substantial equity stake. Ongoing regulatory scrutiny, including an extended licence suspension by NSW Independent Casino Commission chief Philip Crawford, adds to the uncertainty surrounding Star’s future. Executives have expressed frustration, saying the fines and tightening compliance measures leave the company barely able to operate. The outcome will dictate whether Star can remain solvent or be placed into administration.