Bally’s Corporation Executive Chairman Soo Kim – who also serves as Chairman of The Star Entertainment Group – issued a statement in support of the Australian operator despite having received an AU$260m penalty from the country’s Transaction Reports and Analysis Centre (AUSTRAC).
“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.”
AUSTRAC issued the AU$260m penalty to The Star for serious anti-money laundering (AML) and counter-terrorism financing breaches, payable in four equal installments over 19 months.
Bally’s – which is currently the largest investor in The Star – “supports” the operator’s decision to accept the Federal Court’s punishment but “recognizes the seriousness of the historical conduct underlying the proceedings.”
Kim continued: “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.
“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.”
The Star was penalized by AUSTRAC following years of scrutiny over money-laundering risks at various retail properties managed by the operator. The Federal Court imposed the penalty four years after AUSTRAC commenced legal proceedings against The Star in 2022.
“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,” Kim said.
“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.”
The Star managed to return to positive EBITDA in the first quarter of FY27, reporting AU$12m compared with an AU$13m loss in the prior year period. Group revenue increased 2% year-on-year and 8% quarter-on-quarter to AU$284m.
Bally's Corporation announced that it secured new financing in the amount of $560m to support the development of its planned casino and resort in the Bronx, New York on September 14
