Australia Star Court Ruling Deepens Fallout for Former Executives

The Star Entertainment Group is back under the spotlight after Australia’s Federal Court found two former senior executives breached their duties over the company’s handling of money-laundering and criminal-risk concerns. The ruling is another significant development in the long-running fallout from Star’s governance and compliance failures, which have already triggered major regulatory action and damaged confidence in one of Australia’s biggest casino operators.

Court ruling adds to Star’s legal and regulatory troubles

According to ASIC, the court found Bekier failed to properly deal with a KPMG report that identified weaknesses in Star’s anti-money-laundering and counter-terrorism financing controls. ASIC also said he failed to properly address risks tied to Star’s dealings with junket operator Suncity and the use of China UnionPay cards by casino customers. Martin was found to have breached her duties in relation to all three pleaded contraventions against her, including failing to properly advise the board about Suncity-related risks and being involved in misleading National Australia Bank over UnionPay card use.

The court did not side with ASIC on every point. ASIC’s case against seven former non-executive directors was dismissed, and Bekier was not found to have breached his duties in relation to Star’s expanded credit exposure to two junket customers, including Suncity, or in connection with the management of the company’s business association with Sixin Qin.

ASIC pursued this case because of the fundamental questions it raised about trust, governance and accountability at one of Australia’s largest casino operators

Why the judgment matters

This is not just another historical compliance update. The case goes to the heart of governance standards inside Australia’s casino sector and shows how seriously regulators are still treating failures around criminal-risk oversight and board accountability. ASIC Chair Joe Longo said the regulator pursued the case because of “the fundamental questions it raised about trust, governance and accountability at one of Australia’s largest casino operators.”

ABC’s reporting on the judgment said Justice Michael Lee found Bekier and Martin failed to exercise their powers and duties with due care and diligence between 2017 and 2019, while also describing the culture of senior management in sharply critical terms. That gives the ruling weight beyond Star itself, because it reinforces the message that senior casino executives can face direct personal consequences when serious compliance risks are not escalated or properly handled.

Pressure remains on Star

The decision also lands at a difficult time for Star’s wider business. Reuters reported in late February that the company posted a normalised loss of A$75.7 million for the six months to 31 December 2025, underlining the broader financial pressure already facing the group. ASIC has confirmed it will now seek penalties and periods of disqualification from managing corporations, meaning the legal fallout from the case is still not over.