Former Star chief executive Matthias Bekier failed to inform the company's board of suspicious conduct committed by Chinese junket operator Suncity in 2018 and 2019, the Federal Court found in March.
Mr Bekier and former Star general counsel Paula Martin have been successfully sued by the Australian Securities and Investments Commission for breaches of their duties.
Justice Michael Lee on Wednesday imposed the penalty on Mr Bekier whose senior position at the casino materially aggravated the seriousness of his misconduct.
"The community tolerates casino operations upon the premise that those controlling them will exhibit vigilance equal to the risks inherent in the enterprise," the judge said in his decision.
"When it came to Star, that vigilance was found wanting."
The casino's corporate governance failures emerged because its overseers didn't "blow the trumpet" when they saw "the sword coming", he added.
Mr Bekier's remuneration was more than  $3 million in the 2021 financial year and more than $1.7 million the following year before his resignation in March 2022.
The judge also hit Ms Martin with a fine of $400,000.
The dysfunctional environment of a casino concerned about junkets, regulatory compliance and anti-money laundering risks heightened rather than lessened Ms Martin's obligations as Star's most senior solicitor, the judge noted.
Justice Lee found neither executive had shown any developed insight into the seriousness of their contraventions.
Mr Bekier was banned from managing corporations for six years while Ms Martin was banned for seven years.
The pair were also ordered to pay 45 per cent of ASIC's legal costs of bringing the proceedings.
Lawyers for ASIC originally sought a $1.3 million fine against Mr Bekier and a $1.1 million fine against Ms Martin at a hearing in May.
However, the corporate watchdog previously agreed to much lower penalties of $180,000 for former chief casino officer Greg Hawkins and $60,000 for former chief financial officer Harry Theodore over similar misconduct.
Mr Hawkins and Mr Theodore were banned for 18 months and nine months, respectively.
Justice Lee said the overly generous deals inked had ultimately reduced the penalties he imposed on the former casino boss and chief lawyer.
"ASIC cannot treat some contraveners with a light touch and then illogically seek disproportionate penalties on those who put ASIC to proof," he said.
Professor Elizabeth Sheedy told AAP that the penalties were significant but lower than what the community would expect because of the two prior settlements.
"The cautious approach taken by ASIC in those cases is disappointing and suggests that the regulator may have been too risk averse in relation to litigation risk," the Macquarie University risk management specialist said.
"I urge ASIC to review their approach in light of this outcome."
In March, Justice Lee found Mr Bekier and Ms Martin did not inform Star's board of the risks posed by Suncity in 2018 and 2019.
This conduct included bundles of cash being delivered to the service desk in blue cooler bags or cardboard boxes and junket staff hiding under blankets to stay out of the view of CCTV cameras.
Both were also aware of a misleading email to lender National Australia Bank in 2020 about concerns gamblers were using their China UnionPay cards for gambling, which was prohibited by a foreign card scheme.
Junkets and their international VIP players were highly lucrative to Star, bringing in tens of billions of dollars annually.
The judge also threw out ASIC's case against 11 current and former Star directors.
Ms Martin declined to comment on Wednesday's outcome.
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