SkyCity Cleared to Keep Casino License in South Australia After Investigation

SkyCity Entertainment has been found suitable to maintain its casino license in South Australia after a thorough independent investigation. The ruling follows earlier concerns about the company’s compliance with anti-money laundering laws and its general management practices. 

SkyCity Cleared for Operation

Led by retired Supreme Court judge Brian Martin, the inquiry recognized the substantial progress the company has made since its past failings were brought to light. Judge Martin’s report concluded that, despite previous failings, SkyCity Entertainment has made “genuine” efforts to address its deficiencies. He noted that, had he been asked to assess the suitability of the licensee and SkyCity Entertainment Group (SCEG) as of October 2021, the only possible conclusion would have been that neither was suitable. However, he acknowledged that the circumstances have since changed.

The financial repercussions of the inquiry and resulting penalties have been substantial for SkyCity. The Adelaide Casino has delivered mixed results, contributing to nearly NZD 120 million (about $71.4 million) in tax obligations and anti-money laundering (AML) penalties, along with a NZD 94 million (around $56 million) impairment in its valuation last year. 

Investment analysts have cautioned that further enforcement actions could result in additional financial penalties for SkyCity. Forsyth Barr analyst Paul Koraua indicated that a potential $32.5 million penalty may be expected in the 2026 financial year. However, some offset could be provided due to the $39 million improvement program already approved by the commissioner.

The scandal regarding the company’s unpaid obligations also led to several lawsuits. Just last month, eight former SkyCity executives were sued by a shareholder seeking to recover the AU$67 million ($43.56 million USD) penalty the casino operator paid for failing anti-money laundering obligations.

What Happens Next?

In response to the inquiry’s findings, SkyCity has pledged to invest A$60 million (approximately $39 million) over the next three years to improve its systems and management practices. Chief Executive Jason Walbridge acknowledged the company’s past shortcomings, stating that SkyCity accepts the report’s conclusions and apologies for not meeting the required standards. This investment signals the company’s proactive effort to strengthen regulatory compliance and rebuild public trust.

However, despite the generally positive assessment, SkyCity Entertainment still faces ongoing scrutiny. South Australian Liquor and Gambling Commissioner Brett Humphrey emphasized that the report does not amount to a “clean bill of health” for SkyCity Adelaide. He raised serious concerns about the deficiencies and breaches identified during the inquiry, noting that they remain deeply troubling. Consequently, additional regulatory actions, including further penalties, are still being considered.