Bally’s says US$183m fine will not sink The Star

The casino operator will pay the penalty in four instalments through May 2028, while its financing facility faces a formal review event.

Key takeaways:

• Bally’s Corporation says The Star Entertainment Group will remain a going concern despite an AU$260m (US$183m) AUSTRAC penalty.
• The Federal Court of Australia ordered the penalty to be paid in four instalments between November 2026 and May 2028.
• The fine relates to historical anti-money laundering and counter-terrorism financing failures at The Star’s Sydney and Queensland properties.
• The penalty triggered a formal review event under The Star’s credit facility agreement with WhiteHawk Capital Partners.
• Bally’s executive chairman Soo Kim said the turnaround was progressing well and reaffirmed the company’s commitment to supporting The Star.

Australia.- Bally’s Corporation, which, alongside partner Investment Holdings Pty, holds a controlling 61 per cent stake in The Star Entertainment Group, has issued a statement reassuring investors that the recent AU$260m (US$183m) civil penalty will not lead to the operator’s insolvency.

The statement follows the Federal Court of Australia’s ruling over historical anti-money laundering (AML) and counter-terrorism financing (CTF) failures at its Sydney and Queensland properties. The operator was ordered to pay the fine in four instalments between November 2026 and May 2028 While the penalty quantum has triggered a formal review event under a credit agreement with WhiteHawk Capital Partners, Bally’s said it remains confident the financing facility will remain available.

Bally’s executive chairman Soo Kim, who also serves as chairman of The Star, said the business is making steady progress under its new leadership team.

“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’re equally proud of what Star’s new leadership team has accomplished in a relatively short period of time. Fortunately for us, the turnaround is progressing at a good pace.”

He added: “This turnaround is about more than financial performance. It is about rebuilding the company from the inside out… Gaming is a privilege, not a right, and earning and maintaining that privilege requires accountability. Bally’s will continue bringing its experience and resources to support them as they move the business forward.”