Star Entertainment Faces $260 Million Fine in iGaming Industry

Star Entertainment Addresses $260 Million Fine and Financial Standing

Star Entertainment chairman Soo Kim says a $260 million fine handed to the gaming and hotel giant for turning a blind eye to widespread money laundering will not send it broke, despite the company claiming in court that a blockbuster penalty would simply send it out of business.

Kim, who is also chairman of Star’s biggest investor, American giant Bally’s Corporation, said circumstances had changed since Star had argued in the Federal Court that a fine of more than $100 million would force a collapse.

"Given that the current ​ownership and management team had nothing to do ​with the actions that gave rise to the proceedings, we ‌commend ⁠the work of AUSTRAC and the Federal Court," Kim said. 

The penalty, ​to be paid in four installments over ​19 months, stems from a civil lawsuit brought by ⁠the Australian Transaction Reports and Analysis Centre (AUSTRAC) in ​2022, which alleged Star entities failed to comply with ​anti-money laundering and counter-terrorism financing regulations.

Market Response, Credit Facilities, and Recent Profits

The company said the penalty was materially in line with provisions it had already recorded.

Star said it was continuing discussions with US-based private credit investment manager WhiteHawk regarding ​the $390 million credit ​facility agreed ⁠in May and remained confident the facility would stay available

Shares resumed trading after ​a halt and rose as much ​as ⁠9.6% to A$0.143 on Thursday

Earlier this week, Star swung to a profit for the first time in nearly a ⁠year, ​helped by strong performances at its ​Sydney and Gold Coast sites and cost-saving measures.