AUSTRAC has pushed back against criticism over the drawn-out legal proceedings against The Star Entertainment Group, insisting the severity of the allegations justifies the time and cost involved.

Speaking at the Regulating the Game conference in Sydney, AUSTRAC CEO Brendan Thomas acknowledged the case has moved slower than expected. But he made clear the regulator cannot ignore what he called “incredibly serious” violations.

Years of Violations Come to Light

The legal action stems from 2022, when AUSTRAC uncovered widespread compliance failures at The Star that mirrored findings from the Bell inquiry. The charges centre on systematic failures to assess money laundering risks, inadequate customer due diligence, and allowing suspicious high rollers to move large sums through the casino without proper scrutiny.

Most damaging were The Star’s ties to junket operators linked to organised crime, including the now-defunct Suncity Group.

These relationships allowed potentially laundered funds to flow through the casino unchecked. Thomas emphasised this cannot be overlooked regardless of how long court proceedings take.

The Star Sydney has operated under licence suspension since 2022. The company faces potential fines running into hundreds of millions of Australian dollars, though the final figure remains uncertain as the case continues.

Court Delivers First Convictions

While the main case grinds on, the Federal Court recently ruled against two former Star executives. Matt Bekier, the company’s former CEO and managing director, and Paula Martin, former chief legal and risk officer, were both found to have violated the Corporations Act through their involvement with Suncity.

The convictions represent the first concrete outcomes from years of regulatory scrutiny. They barely scratch the surface of the systemic issues uncovered at The Star, frankly.

New Leadership Faces Uphill Battle

Soo Kim, who chairs Bally’s Corp and now leads The Star Entertainment Group following Bally’s acquisition of a controlling stake, recently described being “appalled” by the extent of the company’s mismanagement.

Speaking at ICE Barcelona in January, Kim expressed confidence that Bally’s can turn the operation around. That said, he faces a regulatory environment that has lost all patience with The Star’s previous approach to compliance.

Thomas indicated he hopes for a Federal Court decision soon but declined to provide specifics due to ongoing proceedings.

For players and the wider industry, the case serves as a stark reminder of what happens when operators treat anti-money laundering requirements as suggestions rather than obligations.