Auckland-headquartered SkyCity Entertainment Group has reached an in-principle agreement with South Australia’s gambling regulator over an almost four-year battle against the casino’s comp;liance failures.
Under the in-principle agreement with the Commissioner for Liquor and Gambling in South Australia, SkyCity will pay A$21 million in three equal installments. The first payment of A$7 million is due within 28 days of the agreement – which is dated June 19th.
The fine resolves issues flagged in an independent review published in August last year that was led by retired Supreme Court judge Brian Martin. His review found SkyCity Adelaide was suitable to keep its casino license – despite serious past comp;liance failures.
The 514-page report highlighted what it called “a poor and inadequate culture” at the casino until around late 2021 – when things did begin to change for the better, at least.
Interestingly, this isn’t SkyCity’s first large penalty tied to its Adelaide casino, and in June 2024 they took an even bigger hit, when the Federal Court ordered them to pay AU$67 million as a result of AUSTRAC’s civil case that found the casino had broken anti-money laundering laws – multiple times, and on a sustained basis.
Aside from the fine, SkyCity has also agreed to a significant overhaul of how the Adelaide casino is actually owned and governed on a day-to-day basis. By the 1st January 2028, the casino’s board must comprise a majority of independent non-executive directors, including an independent chair – and there also needs to be a dedicated Adelaide CEO appointed, who must report directly to the local board instead of to the parent company.
Finally, SkyCity Adelaide has also committed to phasing out cash transactions worth more than AU$4,999, and they will also formalise their existing ban on junket operations.
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