Inquiry clears SkyCity Entertainment to hold South Australia's only casino licence
Photo:
RNZ / Marika Khabazi
SkyCity Entertainment has been cleared by an independent review as fit to hold South Australia's only casino licence, despite identified shortcomings in its implementation of anti-money laundering rules, but might yet face further penalties.
The review, led by retired Supreme Court judge Brian Martin, also found that SkyCity Entertainment was 'suitable' to be a close associate of it subsidiary SkyCity Adelaide.
"If I had been asked to determine the suitability of the licensee and SCEG (SkyCity Entertainment Group) at the end of October 2021, the inevitable answer would have been that neither were suitable," Martin said in his report.
"Since then, the situation has changed."
He credited the company's "genuine" efforts to meet its obligations.
"I am satisfied that as at the date of this Report, the licensee is a suitable person to hold the license to operate the Adelaide Casino."
The inquiry was initiated in mid-2022 by the South Australian liquor and gambling commissioner, amid concerns the Adelaide establishment had been lax in policing anti-money laundering rules, leading to the laundering of billions of dollars over several years.
It was interrupted between February 2023 and June 2024, while the Australian financial regulator AUSTRAC took
civil action against SkyCity Adelaide
for breaching national AML/CFT laws, resulting in a A$67m (NZ$74m) penalty for the breaches.
"We fully accept and acknowledge the findings of the report that we did not measure up to the standards required, and we apologise for those failings," said SkyCity's chief executive Jason Walbridge.
He said the company was working with authorities to improve systems and standards, having already committed up to $60m up to 2027.
However, SkyCity still faces possible further action as the state Liquor and Gambling Commissioner, Brett Humphrey, considers the Martin report and other study by authorities.
"This is by no means a clean bill of health for SkyCity Adelaide ... [given] deficiencies and breaches uncovered [which] are deeply concerning," Humphrey said in a statement.
Forsyth Barr investment analyst Paul Koraua said the talk of further enforcement suggested the risk of another penalty.
"We assume a A$50m penalty payable in FY26, with some credit given for the NZ$60m three-year programme of works for the Adelaide casino which has been approved by the Commissioner, and the A$67m AUSTRAC fine already paid."
The Adelaide Casino has been mixed performer for SkyCity costing it close to NZ$120m in tax and AML/CFT penalties, as well as a $94m write down in its value last year, on top of a $330m rebuild completed in 2021.
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