Entertainment
SkyCity Entertainment Group has reached a settlement requiring it to pay AUD 21 million (about $14.72 million) in relation to compliance breaches at its casino in Adelaide, Australia. The settlement is part of a larger deal with the Commissioner for Liquor and Gambling in South Australia, addressing regulatory concerns for SkyCity’s Adelaide casino in an independent review published last year.
SkyCity and Regulators Reach a Settlement
After that case, led by retired Supreme Court judge Brian Martin, a 514-page report found that SkyCity maintained a “poor and inadequate culture” until late 2021. It concluded that the board had failed to exercise its fundamental governance responsibilities, while senior management was initially reluctant to implement meaningful reforms, even after the shortcomings were publicly exposed in 2021.
The settlement agreement with South Australia’s regulator appears to have addressed this concern. Several key provisions are subject to extended implementation timeframes, giving SkyCity additional time to complete the required reforms. Upon completion of its compliance transformation program, which is expected by June 2027, SkyCity Adelaide will be required to appoint an independent compliance auditor. Their task would be to assess the company’s adherence to regulatory obligations and provide annual compliance reports.
Other measures include appointing a CEO for the Adelaide casino who will report directly to the local board, with most senior managers reporting through that role. SkyCity will also phase out cash transactions exceeding AUD 4,999 (about $3,500) and formally prohibit junket operations.
SkyCity Sees This as Another Step in Its Development
The settlement is set to conclude a lengthy regulatory case for SkyCity as Judge Martin had launched his review all the way back in June 2022. The case was additionally lengthened as it had to be put on hold for 18 months because the Australian Transaction Reports Analysis Centre (AUSTRAC) pursued action in the Federal Court.
SkyCity CEO Jason Walbridge said the principal settlement marked an important step for the company. He said it helps to transform the company’s compliance culture, strengthen its governance, and earn back the trust of the regulators. He explained that SkyCity accepted the findings that led to the outcome and took seriously the obligations it had committed to.
Walbridge further added that the structural changes for the Adelaide Casino, including an independent Adelaide board and locally accountable leadership, demonstrated a genuine commitment to operating as a responsible casino operator. He expressed appreciation for the constructive engagement of the Commissioner’s office throughout the process.
However, SkyCity Entertainment Group still has some legal issues elsewhere in the world, as a lawsuit was filed against its Malta-based casino a couple of months ago.
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Stefan Velikov