SkyCity Adelaide hit with A$21m fine and told to clean up act
SkyCity Entertainment Group subsidiary SkyCity Adelaide will pay a A$21 million fine and implement sweeping governance and compliance reforms under an in-principle agreement with South Australia’s Liquor and Gambling Commissioner, marking the latest major regulatory action against an Australian casino operator.
The non-binding heads of agreement represents the final stages of disciplinary proceedings arising from the independent review conducted by former Supreme Court judge Brian Martin, along with other compliance concerns identified by the state regulator.
The settlement comes after years of regulatory scrutiny over Adelaide Casino’s anti-money laundering controls, counter-terrorism financing obligations and harm minimisation practices.
Martin’s report, released in August last year, uncovered significant failings under SkyCity Adelaide’s previous management, highlighting what he described as systemic shortcomings in compliance culture and governance.
The report found that senior management had at times prioritised profits over compliance and concluded that as of October 2021, neither SkyCity Adelaide nor New Zealand-based parent company SkyCity Entertainment Group Limited (SCEG) would have been suitable to hold a casino licence or remain a close associate of the licensee.
However, Martin also noted that by April 2024, significant changes in leadership and internal culture had materially improved the group’s standing.
He said those reforms had resulted in “a change in approach to culture and a frank acknowledgment of past failings,” ultimately allowing SkyCity Adelaide to remain suitable to hold South Australia’s casino licence.
South Australia’s Liquor and Gambling Commissioner Brett Humphrey said the fine and remediation package were designed to ensure those past failures are not repeated.
“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,” he 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.”
Humphrey said the agreement would also impose obligations on SkyCity’s New Zealand-based parent company.
“This agreement will also see the casino’s New Zealand-based owner, SCEG, be subject to certain regulatory obligations,” he 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 future.”
Under the agreement, SkyCity Adelaide will pay the A$21 million fine in three equal instalments of A$7 million.
The first payment will be due within 28 days of the final settlement deed being executed, with the remaining two instalments payable one and two years later.
As part of the settlement, SkyCity Adelaide must implement a broad range of compliance and governance reforms.
These include appointing a majority of independent non-executive directors to the SkyCity Adelaide board by January 1, 2028, appointing a dedicated Adelaide chief executive officer who can only take instructions from the local board unless approved by the Commissioner, and notifying regulators of significant legal breaches within five business days.
The operator must also provide independent expert reports assessing workforce capability, training and corporate culture, appoint an independent compliance auditor to report annually on compliance obligations, phase out cash transactions above A$4,999 and permanently maintain its ban on junket operations.
In one of the most significant changes, the Commissioner will gain powers to issue legally binding directions to SCEG regarding certain Adelaide casino operations carried out under the South Australian licence.
Humphrey described those powers as a major step forward in strengthening oversight of the casino’s offshore ownership structure.
“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,” he said.
“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.”
SkyCity chief executive Jason Walbridge said the agreement reflected years of work to rebuild the company’s compliance systems and governance standards.
“Reaching this in-principle agreement is 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,” he said.
“We accept the findings that led to this outcome and take seriously the obligations we have committed to.”
Walbridge said the structural changes being implemented at Adelaide Casino reflected a clear commitment to operating responsibly.
“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,” he said.
“We are grateful for the constructive engagement of the Commissioner’s office throughout this process.”
The settlement is the latest in a wave of regulatory crackdowns across Australia’s casino sector, following major enforcement action against Crown Resorts and The Star over governance failures, AML breaches and weak risk controls.
Discussions between the Commissioner, SkyCity Adelaide and SCEG are ongoing, with a final legally binding agreement expected to be completed in the coming months.
SkyCity Entertainment has run into regulatory issues on two fronts in recent times after their Malta-based online casino that accepts Kiwi players had a lawsuit launched against it, challenge its legality.
