SkyCity Adelaide Pty Ltd (SkyCity Adelaide) will be fined $21 million and will implement a series of compliance measures sought by South Australia’s Liquor and Gambling Commissioner, under an in-principle agreement reached with the business.
The non-binding agreement marks the final stages of disciplinary proceedings arising from the independent review undertaken by retired Supreme Court Judge the Hon Brian Martin AO KC, and other issues identified by the liquor and gambling regulator.
Mr Martin’s report—released in August last year—highlighted a litany of failures by SkyCity Adelaide’s previous-management in fulfilling its legal requirements in regards to anti-money laundering and counter terrorism financing obligations, along with gambling harm minimisation activities and culture.
In his report, Mr Martin highlighted a series of instances where senior management at the time prioritised profit over compliance, saying that in his view, in October 2021, neither SkyCity Adelaide nor SkyCity Entertainment Group Limited (SCEG) would have been suitable to hold a licence or be a close associate of the licensee, respectively.
But he went on to note that by April 2024, changes in senior management and corporate culture had led to “a change in approach to culture and a frank acknowledgment of past failings” that meant that at the time of his report, SkyCity Adelaide was suitable to hold the casino licence and SCEG was suitable to be a close associate.
“At the time that Mr Martin’s report was released, I said that the corporate and cultural change within SkyCity Adelaide and SCEG did not equate to a clean bill of health,” Liquor and Gambling Commissioner Brett Humphrey said.
“Today I can confirm I have entered into a non-binding heads of agreement to resolve this matter, which will see SkyCity Adelaide pay a $21 million fine and implement compliance measures to support the regulation of the Adelaide Casino, improve SkyCity Adelaide’s legislative compliance and ensure it remains suitable to hold the casino licence.
“This agreement will also see the casino’s New Zealand-based owner, SCEG, be subject to certain regulatory obligations.
“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 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.”
As part of today’s in-principle agreement, SkyCity Adelaide will commit to:
- appointing a majority of independent non-executive directors to the SkyCity Adelaide Board by 1 January 2028
- appointing a Chief Executive Officer who can only take instructions from the SkyCity Adelaide Board, unless approved by the Commissioner
- advising the Commissioner of any significant breaches, or likely breaches, of relevant state or federal laws within five business days of becoming aware of the breach
- providing independent expert reports, at its own cost, assessing its workforce capability, training and culture
- appointing an Independent Compliance Auditor to report annually on its compliance with all relevant obligations under its licence
- phasing out cash transactions over $4,999
- permanently enforcing its existing ban on junkets.
Under this in-principle agreement, the Commissioner will also be conferred powers to issue legally binding directions on SCEG about certain operations carried out under the South Australian casino licence, and SCEG must also notify certain compliance breaches to CBS.
“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,” Mr Humphrey said.
“In particular, 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.
“Similarly, the requirement for both SkyCity Adelaide and SCEG to advise me of significant breaches of certain legislation is an obligation that few other individuals or companies have. To put this into perspective: if SkyCity Adelaide or SCEG fail to notify me of a significant breach, I can take disciplinary action against SkyCity Adelaide.
“These initiatives complement the existing oversight and should give South Australians confidence that we are taking these matters seriously, that we expect genuine action by SkyCity Adelaide and SCEG, and that future non-compliance will not be tolerated.”
Discussions between the Commissioner, SkyCity Adelaide and SCEG to finalise this matter are continuing, with a formal, final legally binding agreement expected in the coming months.
“As those discussions are continuing, it would not be appropriate to comment further at this stage,” Mr Humphrey said.
