Adelaide casino hit with eight-figure fine
SkyCity will pay the state government millions of dollars following a high-profile review that uncovered multiple failings by the company’s previous management.
SkyCity Adelaide will be fined $21 million and will implement changes across the board as sought by the state’s Liquor and Gambling Commissioner.
Under the in-principle agreement reached between the government and the company, the casino must appoint a SkyCity Adelaide board, a CEO for the local arm of the larger company, and phase out all cash transactions over $4,999.
It follows a major review of SkyCity undertaken by retired Supreme Court Judge Brian Martin, which highlighted multiple failures by SkyCity’s previous management in fulfilling its obligations under anti-money laundering and counter-terrorism laws.
This included instances where senior management prioritised profit over compliance. Martin found that, in October 2021, neither SkyCity Adelaide nor New Zealand-based parent company SkyCity Entertainment Group would have been suitable to hold a casino licence – the only one in South Australia.
However, Martin also found that by April 2024, changes in management and corporate culture led to a “change in approach to culture and a frank acknowledgement of past failings”. Therefore, at the time of his report, Martin said SkyCity Adelaide was suitable to hold the casino licence.
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“Today I can confirm I have entered into a non-binding heads of agreement to resolve this matter,” Commissioner Brett Humphrey said.
“This should send a clear message to South Australians that the failings of the past are completely unacceptable, and we are expecting them – as the owners and operators of South Australia’s only casino – to do better in the future.
“The implementation of stringent remediation measures should also give South Australians confidence that we are taking strong steps to ensure SkyCity Adelaide continues to improve the way they do business – to better adhere to their harm minimisation, anti-money laundering and counter-terrorism financing obligations.”
Also under the agreement, the Commissioner will be given powers to issue legally binding directions on SkyCity Entertainment Group about certain operations carried out under the SA casino licence.
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“These are significant measures – with the cost to be borne by SkyCity Adelaide – that will help ensure ongoing compliance with all licence conditions and relevant state and federal laws,” Humphrey said.
“The ability to issue legally binding directions on SCEG regarding operations carried out under the South Australian casino licence is a significant, positive step, as it ensures appropriate oversight of the Casino’s overseas owners.”
A formal, final, legally binding agreement was expected in the coming months, the Attorney-General’s Department said.
SkyCity CEO Jason Walbridge said reaching the in-principle agreement was an “important step for SkyCity and reflects the significant work our team has done over the past four years to transform our compliance culture, strengthen our governance and earn back the trust of our regulators”.
“We accept the findings that led to this outcome and take seriously the obligations we have committed to,” Walbridge said.
“The structural changes for the Adelaide Casino – including an independent Adelaide board and locally accountable leadership – reflect a genuine commitment to operating as a responsible casino operator.
“We are grateful for the constructive engagement of the Commissioner’s office throughout this process.”
Shares in SkyCity are up 16.34 per cent this morning in early trade.
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