Star Entertainment’s future remains uncertain as it faces a federal lawsuit tied to anti-money laundering (AML) breaches. Filed by AUSTRAC, the case accuses the operator of years of misconduct, mainly involving junket ties with Suncity Group, whose ex-chairman Alvin Chau is now imprisoned.
Good to know
- AUSTRAC is seeking a AU$400 million penalty from Star Entertainment.
- The operator has admitted to handling over $1 billion from high-risk junkets.
- A $300 million takeover deal by Bally’s and Bruce Mathieson is underway, with a vote due June 25.
Between 2016 and 2020, Suncity-linked junkets saw more than AU$70 million in weekly turnover at Star Sydney alone. AUSTRAC claims Star’s oversight failed repeatedly, and the company continued doing business with Suncity until Chau’s arrest in 2021, despite AML warnings dating back to 2016.
Star has warned that even a $100 million fine could be financially damaging. Court filings confirm that risk controls were lacking, and the company could not trace the origins of large sums flowing through its venues.
Both Star Sydney and Star Gold Coast remain under state supervision, with licence suspensions extended through September. In a move to ease its financial stress, Star sold its Brisbane stake in the Queen’s Wharf project earlier this year.
The operator’s survival may now hinge on a $300 million capital injection from Bally’s and Bruce Mathieson. Star has already received $100 million of that amount. However, questions remain about Bally’s financial health as the company juggles debt and casino projects in the US. A shareholder vote on the final $200 million is scheduled for June 25
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